BlockFi, a cryptocurrency lender, said on Thursday that it has liquidated a “major client” and taken “decisive” risk mitigation measures in compliance with its contracts with specific counterparties. While the lender has not named the client, it comes amid claims that Three Arrows Capital (3AC), a crypto hedge fund and venture capital firm, was the counterparty involved. BlockFi CEO Zac Prince tweeted late Thursday, BlockFi can confirm that we exercised our best business judgment recently with a large client that failed to meet its obligations on an overcollateralized margin loan. We fully accelerated the loan and fully liquidated or hedged all the associated collateral. — Zac Prince (@BlockFiZac) June 16, 2022 A shaky market is causing issues for some of the industry’s most well-known brands, such as interest yield-earning platform Celsius, which has restricted user withdrawals and transfers due to harsh market conditions. Some crypto companies cannot pay their obligations to lenders due to a liquidity issue. BlockFi Took The First Action BlockFi was one of the first to take action with the unnamed counterparty. Therefore, client funds are unaffected, Prince stated in a follow-up tweet. By publication, Blockworks has not received a reaction from BlockFi. No client funds are impacted. We believe we were one of the first to take action with this counterparty. — Zac Prince (@BlockFiZac) June 16, 2022 Following a $400 million liq...
