Blockfi Took Part In Liquidating Three Arrows: ... Site

BlockFi's involvement in liquidating Three Arrows Capital (3AC) was a proactive risk management move to mitigate losses from the hedge fund's massive defaults . As one of the first lenders to act, BlockFi fully liquidated or hedged all collateral associated with its loans to 3AC. Key Aspects of the Liquidation

: 3AC failed to meet a margin call on an overcollateralized bitcoin loan following a sharp market downturn.

: BlockFi accused 3AC of using fraudulent conduct to secure its loans, which 3AC's liquidators contested in court. BlockFi Took Part in Liquidating Three Arrows: ...

: BlockFi claimed to be among the first to take action , which helped it recover funds before other lenders. Legal and Financial Aftermath

: In February 2024, a bankruptcy judge approved a sealed settlement between BlockFi and 3AC liquidators, ending years of dueling claims. : BlockFi accused 3AC of using fraudulent conduct

: Despite its early action, the exposure to 3AC’s collapse—combined with the later fall of FTX—ultimately forced BlockFi to file for Chapter 11 bankruptcy in November 2022. BlockFi Liquidated Three Arrows Capital: Report - CoinDesk

: BlockFi CEO Zac Prince confirmed the company "fully accelerated the loan" and liquidated all associated collateral to protect its balance sheet. : Despite its early action, the exposure to

: Before settling, 3AC liquidators claimed BlockFi owed them $280 million , while BlockFi asserted it was owed $129 million by the defunct hedge fund.