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BLOCKFI ONE AMONG MANY TO LIQUIDATE 3AC’S POSITION

BLOCKFI ONE AMONG MANY TO LIQUIDATE 3AC’S POSITION

Venture Three Arrows Capital (3AC) has reportedly failed to meet margin calls from its lenders, which has fueled speculation of debt after the crypto market collapsed this week that led to the unexpected liquidation of the Singapore company.


The Crypto BlockFi lender was among the firms to liquidate at least some of the 3AC positions, according to the Financial Times. Quoting people familiar with the matter, FT reported that 3AC borrowed Bitcoin (BTC) from lenders but was unable to meet the margin call after the market became sour earlier this week.


The problems surrounding 3AC seem to have contributed to Finblox, a Hong Kong-based platform that allows investors to profit from their digital assets. Finblox said he was forced to lower his withdrawal limit on Thursday due to concerns surrounding the company.


Although rates vary, 3AC is likely to raise $ 400 million to fill positions in most positions. The company had significant exposure to Terra (formerly Luna, now LUNC) and held senior positions in projects such as Solana (SOL) and Avalanche (AVAX). As Cointelegraph reported, 3AC spent the last few days shipping assets to invest in various financial platforms (DeFi), most notably Aave (AAVE).



However, this week’s mass closure is likely to be due to the collapse of Ether (ETH), which has dropped to $ 1,000 on its way to its lowest level since December 2020. It has also been speculated that 3AC exposure to artificial assets, such as the Grayscale Bitcoin Trust. (GBTC) and Lido's Staked ETH (stETH), were also responsible for mass termination events.


Rumors about the 3AC collapse have spread in recent days after Su Zhu, the founder of the firm, released a secret tweet that the company was working with "the right teams" to solve its problems.

Source: cointelegraph

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