24/7 Cryptocurrency News

Nexo Denies Exposure To Three Arrows Capital Amid Liquidation Risk

Crypto lender Nexo said it has no exposure to Three Arrows Capital, as the hedge fund faces a potential liquidation by its debtors.
Published by
Nexo Denies Exposure To Three Arrows Capital Amid Liquidation Risk

The ongoing cryptocurrency collapse has proved to be an alarming call for many investment firms dealing with digital assets. The same has happened with Three Arrows Capital (3AC). However, Crypto Lender Nexo has come forward to announce that they share no exposure with 3AC.

Advertisement

Nexo refused 3AC’s request for credit

The crypto hedge fund firm’s fate lies in the balance as the firm faces mass liquidation. This has increased the probability of the 3AC’s insolvency. In the meantime, Nexo mentioned that over two years ago, they declined Three Arrows Capital’s request for unsecured credit. However, they came to know that they acquired it from somewhere else.

Meanwhile, it mentioned that Nexo has just signed a partnership agreement with Three Arrows Capital over their NFT fund. However, it did not work out and they have $0 business and exposure with 3AC. Nexo informed that their customer liabilities stand at $4.9 billion as of June 15, 2022. It added that its assets exceed its Customer Liabilities.

However, the NEXO token’s price has dropped by more than 44% in the past 7 days. It is trading at an average price of $0.696, at the press time.

Advertisement

3AC leads to massive liquidation

As per the report, the crypto hedge fund firm has been liquidating its holdings. An alleged wallet associated with the 3AC liquidated over 15K Ethereum (ETH) just in one hour. It was mentioned that the firm has been liquidating its holdings from its other wallets. This has resulted in a continuous collapse in the ETH prices. The world’s second largest crypto price has dropped by over 38% in the past 7 days. It is trading at an average price of $1,120, at the press time.

Nexo added that it is obvious now that their approach was correct. This is the reason that their assets exceed their liabilities. The lending platforms have tried to differentiate themselves from others by taking a conservative lender approach.

Advertisement

Share
Ashish Kumar

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at ashish@coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Pump.fun Rival Zora Rallies Over 30% Following Robinhood Listing

Zora, Coinbase-based creator economy platform, has been listed on Robinhood. This also highlights its increased…

October 9, 2025
  • 24/7 Cryptocurrency News

Peter Brandt Lists XRP Among Shorts Amid Crypto Market Crash

Veteran trader Peter Brandt has doubled down on his bearish XRP prediction. This time, he…

October 9, 2025
  • 24/7 Cryptocurrency News

Fed’s John Williams Backs More Rate Cuts This Year Amid Labor Market Concerns

New York Fed President John Williams has shown his support for additional Fed rate cuts…

October 9, 2025
  • Bitcoin News

Bitcoin Edges Higher as Fed Chair Jerome Powell Fails to Comment on Monetary Policy

The Bitcoin price is up today, after a significant drop in the last 24 hours.…

October 9, 2025
  • 24/7 Cryptocurrency News

Flare Network Surpasses $43M in Bridged XRP, Expert Predicts Breakout to New ATH

Flare Network has recorded over $43 million worth of XRP now bridged onto its blockchain.…

October 9, 2025
  • Bitcoin News

Bitcoin, Ethereum Drag Broader Crypto Market Lower Ahead of FED Powell Speech

Bitcoin and Ethereum are dragging lower amid massive volatility ahead of Fed Chair Jerome Powell's…

October 9, 2025