Cryptocurrencies
BlockFi Seeks to Quell Fear Amid Fallout from Crypto Hedge Fund Three Arrows
- Lending platform confirms a client failed to meet margin call
- Collateral-damage concern chills crypto market amid downturn
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Crypto lending platform BlockFi Inc. said it continues normal operations and no client funds are impacted, in an apparent move to allay concerns over contagion risks from the suspected troubles at crypto hedge fund Three Arrows Capital LLC.
BlockFi confirmed it recently had a large client that failed to meet its obligations on an overcollateralized margin loan, and it “fully accelerated the loan and fully liquidated or hedged all the associated collateral,” Chief Executive Officer Zac Prince said on Twitter, without naming the client.