Blockchain.com, a popular crypto exchange may end up losing $270 million over its loans to Three Arrows Capital (3AC).
3AC filed for Chapter 15 following the bearish turbulence in the cryptocurrency markets. Peter Smith, Blockchain.com Chief Executive Officer (CEO) revealed the $270 million (approx.) loss in a latter to shareholders according to Reuters: “Three Arrows is rapidly becoming insolvent and the default impact is approximately $270 million worth of cryptocurrency and U.S. dollar loans from Blockchain.com.”
Smith added that the firm is exploring various methods to recover from the loss.
Sun and CZ to the Rescue
Justin Sun, the founder of TRON DAO (previously known as TRON Foundation) said that he as well as TRON are prepared to assist struggling crypto companies.
Sun and TRON are willing to spend up to $5 billion rescuing companies in the crypto industry. He also revealed that TRON has approached an investment bank (name undisclosed) to assist them in future deals.
The main interest are companies with a large userbase in CeFi and DeFi platforms.
Binance is also active in bailing out companies. Towards the end of June 2022 it was suggested that at least 50 struggling companies turned to CZ for assistance.
In a podcast for Decrypt, CZ hinted that Binance is looking into high number of deals:
“Many companies are short on money, that doesn’t mean most of them are bad companies… some companies make minor mistakes their first time going through a bear market, they have good products, good teams, so we just gotta help help them out a bit.
“And those things we are perfectly willing to do. And we’re looking at a high number of deals like that… And some of them are actually good deals. So I think you will see that we will be investing, bailing out, saving multiple projects.”
KuCoin CEO Denies Social Media Rumors
There were speculations that originated from an anonymous twitter account that KuCoin may be the next exchange to become insolvent. KuCoin’s CEO was forced to respond, denying the rumors.
He added that KuCoin raised $150 million in May with a $10 billion valuation, KuCoin is among the several companies that are continuing to hire and launching new products in a bear market.
The 2022 H1 report will be transparent and shed light on the company’s operations.
This article was written by Matti Williamson at www.financemagnates.com.