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

Cryptocurrency platforms BitMEX, FTX and Deribit liquidated positions of hedge fund Three Arrows Capital (3AC) due tothe latter's inability to meet margin requirements. The Block writes about this with reference to informed sources.

The publication's interlocutors said that 3AC owed BiMEX about $6 million. A representative of the crypto derivatives exchange confirmed the information about the forced closure of the position.

“It was a secured loan that does not involve customer funds,” the company said.

Deribit CEO John Jansen declined to comment.situation, however, confirmed that since 2020, 3AC has been a shareholder of the platform's parent company. 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, where 3AC carried out trading operations. A company representative said that the hedge fund independently closed positions at 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 reportedforced closure of at least part of 3AC positions by crypto-landing platform BlockFi. 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 collapse, rumors appeared online 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.

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