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Latest report about Singapore-based crypto hedge fund Three Arrows Capital (3AC) notes that the venture firm has not met margin calls from lenders.
The news looks to spell more gloom for the firm, which has dominated headlines across the market amid the crypto downturn.
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BlockFi liquidated a large client
On Thursday, a report by the Financial Times indicated that 3AC was indeed liquidated by crypto lender BlockFi. Per the publication, 3AC took out a Bitcoin credit facility from BlockFi, but did not meet margin calls on the same as the market slump sent prices nosediving.
BlockFi CEO Zac Prince appeared to confirm the FT report, noting on Twitter that the lender had “exercised [its] best business judgment recently with a large client.” Although he did not name the client, he noted that the party had failed to meet their obligations on a margin loan.
“We fully accelerated the loan and fully liquidated or hedged all the associated collateral.”
Apparently, 3AC’s liquidations were around $400 million, with losses recorded elsewhere compounding the bleak outlook for the firm.
Earlier this week co-founder Zhu Su appeared to acknowledge that the firm was in trouble, noting in a tweet that the company was “communicating with relevant parties and fully committed to working this out.”
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