FTX, Deribit, and BitMEX crypto exchange liquidated Three Arrows Capital’s positions

According to The Block, this happened after 3AC failed to settle margin calls

17.06.2022 - 13:20

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What’s new? Cryptocurrency exchanges FTX, Deribit, and BitMEX have liquidated Three Arrows Capital (3AC) fund’s positions. This happened after 3AC failed to settle margin calls, The Block reports citing sources. The fund reportedly owed BitMEX around $6 million, while the impact on the FTX and Deribit platforms was “tiny.” 3AC declined to comment.

The Block’s material

Exchanges’ comments. A BitMEX spokesperson confirmed that the exchange had liquidated 3AC’s positions, but declined to comment on the amount owed. However, he added that this was collateralized debt with no customer funds involved.

Deribit’s CEO John Jansen declined to comment on the liquidation of the positions but confirmed that Three Arrows Capital has been a shareholder of the platform’s parent company since February 2020. He noted that even if none of the debts are paid off, this will not affect the financial stability and operation of the exchange.

An FTX spokesperson said that the exchange does not comment on individual customers or accounts “unless required by law.”

A spokesperson for Bitfinex, another exchange on which 3AC traded, said that the fund closed its positions at a loss without resorting to liquidation. 3AC withdrew all its funds from the platform and Bitfinex suffered no losses.

On June 16, Danny Yuan, CEO of 8BlocksCapital, a trading firm, said that Three Arrows Capital (3AC) stole $1 million from their accounts to increase their balance sheet to secure borrowed funds and avoid bankruptcy.

Three Arrows Capital is a well-known cryptocurrency hedge fund founded in Singapore in 2012. The fund invests in crypto, GameFi, and DeFi projects. One of these projects was Praxis, a crypto city-building startup.

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