Crypto: Liquidity Crisis Spreads to Major Exchanges
— Exposure, Voyager, Thestreet, Liquidity, Major, Lenders, Firms, Crypto, Crisis, Money — 1 min read
Hedge fund Three Arrows Capital, also known as 3AC, forced into liquidation by British Virgin Island court. 3AC defaulted on a loan of $667 million granted to it by Voyager Digital. Voyager Digital filed for bankruptcy. Coinbase says it has no exposure to 3AC; Binance, largest crypto exchange by volume, did not respond. Bitcoin prices fell, the less the hedge fund could repay its creditors. Cryptocurrency exchanges and large cryptocurrency exchanges are also victims of the liquidity crunch currently affecting crypto lenders.Blockchain.com, founded in 2011, expects to lose the money loaned to 3ac, but believes this will not affect its liquidity."Coinbase does not," a spokesperson told TheStreet in an emailed statement. Source