BlockFi CEO Zac Prince Thursday said the U.S.-based crypto lender foreclosed on a “large client that failed to meet its obligations” following reports that BlockFi was part of the lenders group that canceled some US$400 million in loans made out to Three Arrows Capital (3AC).
- “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,” said Prince, adding that all collateral put up against the loan was liquidated.
- Prince said that no client funds were affected, and noted that BlockFi was one of the first to take action with the unnamed counterparty.
- Although the CEO has not explicitly named the client, his tweet followed a Financial Times report that claimed BlockFi was among the groups that liquidated at least some of 3AC’s positions.
- Three Arrows Capital is reportedly facing insolvency with liquidation totaling at least US$400 million, according to The Block Crypto.
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