Media reported liquidation of 3AC positions on BitMEX, FTX and Deribit

Media reported liquidation of 3AC positions on BitMEX, FTX and Deribit

Media reported liquidation of 3AC positions on BitMEX, FTX and Deribit

Cryptocurrency platforms BitMEX, FTX and Deribit liquidated the positions of the hedge fund Three Arrows Capital (3AC) due to the inability of the latter to meet margin requirements. The Block writes about this, citing 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.

“This was a collateralized loan that did 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. According to him, the exchange has “a small number of accounts” that are considered “potentially problematic.”

“Even if none of these debts will not be repaid, we will remain financially stable. This will not affect our operations in any way,” Jansen said.

The publication also contacted the Bitfinex cryptocurrency exchange, on which 3AC traded. A spokesman for the company said that the hedge fund closed positions at a loss on its own. 

At the same time, journalist Colin Wu, citing sources, said that Asian institutional investors “liquidated hundreds of millions of dollars in 3AC.”

Earlier, the Financial Times journalists reported 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.” 

Amid the market crash, rumors appeared on the network about the insolvency of a hedge fund that actively used protocols like Aave.  

Recall that on June 16, the trading company 8 Blocks Capital accused Three Arrows Capital of using client funds to cover margin calls.

Read ForkLog bitcoin news in our Telegram — cryptocurrency news , courses and analytics.