Coinbase’s Head of Dept. Addresses Market Depression Amid Concerns Over Meltdown of Crypto Lending Company Three Arrows Capital
In a blog post on Wednesday Coinbase Institutional Head Brett Tejpaul, Prime Finance Head Matt Boyd, and Head of Credit and Market Risk Caroline Tarnok. said Coinbase is not involved in Three Arrows Capital, Celsius and Voyager cited these companies as examples of “risk lending practices”. “Inadequate risk control”, according to the trio, crypto firms face the possibility of bankruptcy caused by cryptocurrencies. “Unprotected bets” and large investments in Terra and excessive overleverage from venture capital firms.
Tejpaul, Boyd and Tarnok said: “Many of these companies are overleveraged with short-term liabilities that do not match illiquid assets. We believe these market participants are immersed in the crypto bull market craze and have forgotten the basics of risk management.”
Three Arrows Capital has failed to repay 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) loans, while lending platform Crypto Celsius has filed for Chapter 11 bankruptcy, with the platform’s lawyers appearing to use legal arguments to steer clear of bankruptcy. Avoid returning user funds.
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