- BitMex has liquidated its Three Arrow’s Capital positions.
- A few other exchanges also followed the decision.
- According to the Block, 3AC owes $6 million to BitMex.
Bitmex, along with a few other exchanges, has liquidated its positions in Three Arrows Capital (3AC). FTX and Deribit followed the same path and liquidated their positions in 3AC as well. This was due to 3AC failing to meet the margin calls as reported by the Block.
As a result, according to one of the sources, Singapore-based 3AC owes BitMEX $6 million. Another source identified the impact on FTX as “insignificant,” adding that Deribit, which includes 3AC among its investors, had just suffered a “minor” loss.
“We are not going to be like other brands and wax poetic about our limited exposure and strong capital position,” said a BitMEX spokesperson, “Instead, we will demonstrate it by providing our users a reliable and liquid trading venue every day, no matter the situation.”
3AC was founded by Su Zhu and Kyle Davies in 2012. The hedge fund had amassed quite an amount of growth over the years. The fall of the Terra ecosystem caused a significant loss for 3AC, which had invested a considerable sum into the network.
The crypto hedge fund is struggling as a result of Terra’s downfall and the accompanying crypto market turmoil. In addition, 3AC has failed to satisfy margin calls. The news about the liquidation was let out by a Bitmex spokesperson, who confirmed it to the news outlet The Block. The spokesperson confirmed that the fund was not client funds and was collateralized debt.
According to a representative for Bitfinex, another exchange where 3AC traded, the fund has concluded its holdings at a loss without requiring them to be liquidated. 3AC has completely removed all of its funds off of the Bitfinex platform, resulting in no damage to Bitfinex.