Crypto hedge fund Three Arrows Capital fails to meet margin calls -FT

June 16 (Reuters) – Singapore-based crypto hedge fund Three Arrows Capital failed to respond to margin calls last weekend as cryptocurrency prices fell, according to a Financial Times report.

New Jersey-based crypto lender BlockFi was among groups that liquidated at least some of Three Arrows’ positions, the FT said, citing people familiar with the matter whom it did not identify.

Three Arrows, which made a strategic investment in BlockFi in 2020, had borrowed bitcoin from the company, the FT said, but was unable to meet a margin call on that loan. One of the people said the liquidation took place by mutual consent, the FT said.

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Company and co-founder Kyle Davies did not immediately respond to requests for comment during the US day.

In a tweet, BlockFi CEO Zac Prince said his company liquidated collateral against a loan to a large customer, without naming who the customer was.

“We have fully accelerated the loan and fully liquidated or covered all associated collateral,” he tweeted.

Three Arrows had tweeted on Wednesday that they had pledged to work things out. There had been discussions on social media that she was facing liquidation issues. Read more

“We are communicating with relevant parties and are fully committed to resolving this issue,” co-founder Su Zhu said in a tweet, without going into details.

The hedge fund was established in 2012, according to its website.

Bitcoin hit a new 18-month low this week, extending falls triggered after major cryptocurrency lender Celsius Network froze withdrawals and the prospect of a sharp rise in US interest rates rattled volatility. the crypto asset class.

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Reporting by Hannah Lang and Michelle Price in Washington Editing by Chris Reese and David Gregorio

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