Three Arrows had recently taken a backlash from the crypto breakdown Terra, raising doubts about the company's ability to repay. 

As it didnt take any colateral to secure the finalised loan. 

That was a worry situation for the

Three Arrows filed for Bankruptcy whereas state that it still had a cent to cover up. 

The loan was a segment of the opaque web of unsecured transactions between the crypto companies that exposed the industry at the time of crypto crash. 

Unsecured lending has become very common in the crypto industry according to the interviews and review of filings. 

Despite the recent breakdown, many companies claimed that the practice could continue and the industries could grow more. 

While pulled themselves back from unsecured crypto lending, many lenders are still confident about following the practice. 

Even if crypto loans are secured, sometimes the colateral is so volatile that the tokens can quickly lose value.