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).

See related article: Client accuses Bitcoin, Ethereum backer Three Arrows Capital of misappropriating funds

Fast facts

  • “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.

See related article: Celsius said to be hiring restructuring attorneys, exploring financing options