Three Arrows Capital Misses Lender Margin Calls Amid Debt Crisis

Three Arrows Capital

Three Arrows Capital has missed its lenders’ demand to pay off extra funds after its cryptocurrency investments underperformed.

Three Arrows had borrowed bitcoins from BlockFi and has since failed to meet their margin call.

The past weekend’s failure to meet margin calls resulted from the sector’s bearish momentum, which has seen the value of most crypto tokens drop significantly.

Cryptocurrency lending firm BlockFi has liquidated part of its 3AC positions, cutting exposure by taking collateral that the fund had committed to support its borrowing.

The announcement comes as Celsius Network, another major cryptocurrency financial service firm, halts withdrawals, swaps, and transfers.

Three Arrows held funds in multiple cryptocurrency ventures, including Avalanche, Solana, and Axie Infinity, which have since sunk 90% since their November ATH. 3AC has also invested in units of the Grayscale bitcoin trust, GBTC.

Three Arrows Capital is a crypto hedge fund based in Singapore with investments spread in lending and trading platforms.

Source: FT

Leave a Reply

Your email address will not be published.

Related Posts