CoinDesk says Blockchain.com Faces $270 Million Hit on Loans to Bankrupt Three Arrows

According to a report released by CoinDesk on Friday, Cryptocurrency exchange Blockchain.com could lose $270 million from lending to hedge fund Three Arrows Capital (3AC), which filed for bankruptcy earlier this month,
"Three Arrows is rapidly becoming insolvent and the default impact is approximately $270 million worth of cryptocurrency and U.S. dollar loans from .."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," the report said, quoting chief executive officer (CEO) Peter Smith's letter to shareholders.
When enquired by Reuters, Blockchain.com refused to comment and 3AC did not immediately respond. 3AC has requested protection from creditors under the US Bankruptcy Code. The US Bankruptcy Code allows foreign debtors to shield US assets.
Steep rate hikes by the US Federal Reserve amid recession fears have led to turmoil in equities and sparked a selloff in cryptocurrencies. The crypto winter has hit several companies in the sector including lending platform Celsius Network and Voyager Digital.