Cryptocurrency platforms BitMEX, FTX and Deribit liquidated hedge fund Three Arrows Capital (3AC) positions due to the latter’s inability to meet margin requirements. Writes about it The Block with reference to informed sources.
The interlocutors of the publication said that 3AC owed BiMEX about $6 million. A representative of the crypto derivatives exchange confirmed the information about the forced closing of the position.
“It was a secured loan that does not involve customer funds,” the company said.
Deribit CEO John Jansen declined to comment on the situation, but confirmed that 3AC has been a shareholder in the platform’s parent company since 2020. The exchange has “a small number of accounts” that are seen as “potentially problematic,” he said.
“Even if none of these debts are repaid, we will remain financially sound. This will not affect our activities in any way,” Jansen said.
The publication also contacted the Bitfinex cryptocurrency exchange, on which 3AC traded. The representative of the company said that the hedge fund independently closed positions with a loss.
At the same time, journalist Colin Wu, citing sources, said that Asian institutional investors “liquidated hundreds of millions of dollars in 3AC.”
Earlier, Financial Times journalists reported on the forced closure of at least part of 3AC positions by the BlockFi crypto Lendin platform. The head of the latter indirectly confirmed the information, saying that the company had liquidated the debt associated with a “major client.”
Against the backdrop of a market crash, rumors appeared on the network about the insolvency of a hedge fund that actively used protocols like Aave.
On June 16, trading company 8 Blocks Capital accused Three Arrows Capital of using client funds to cover margin calls.
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