Cryptocurrency hedge fund Three Arrows Capital has reportedly failed to meet margin calls from its lenders, further adding pressure to solvency risk after it incurred at least $400M in liquidations earlier in the week ended June 17, according to people familiar with the matter, as reported by the Financial Times on Thursday. Crypto lender BlockFi was among the firms that liquidated some of Three Arrows' holdings, the people told the FT. In other words, BlockFi "reduced its exposure by taking collateral the fund had put down to back its borrowing," the people added. The Dubai-based crypto investment firm, which is known to make bullish levered bets on digital coins, had borrowed bitcoin (BTC-USD) from BlockFi, though it wasn't able to meet a margin call as the price of the world's largest digital token by market cap erases all of last year's gains and then some, the people explained to the FT.
SEC Hosts First-Ever Crypto Roundtable Today
