“Three Arrows is quickly becoming insolvent and the impact of the default is approximately $270 million in cryptocurrency and USD loans from Blockchain.com,” the report said, citing Chief Executive Peter Smith’s letter to the shareholders.
Blockchain.com declined to comment when contacted by Reuters and 3AC did not immediately respond.
3AC sought protection for its creditors under the United States Bankruptcy Code, which allows foreign debtors to protect their US assets.
Aggressive rate hikes by the US Federal Reserve and fears of recession have led to turmoil in stocks and sparked a cryptocurrency rush. The cryptocurrency winter has affected several companies in the industry, including lending platform Celsius Network and Voyager Digital.