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FTX, Deribit, and BitMEX Liquidate positions In Three Arrows Capital

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  • Crypto trading platforms FTX, Deribit, and BitMEX have liquidated positions in Three Arrows over the past week.
  • According to one of the sources, Three Arrows owes BitMEX somewhere around $6 million.
  • The legal department at BitMEX has been in touch with Three Arrows.

FTX, Deribit, and BitMEX have liquidated Three Arrows Capital’s positions, sources tell The Block. According to sources, some Asian institutions have sold hundreds of millions of dollars in 3AC’s positions.

According to a source familiar with the matter, 3AC’s positions were heavily leveraged, and the liquidations may have been caused by a forced deleveraging. The Block has also learned that some of the positions were held in Bitcoin derivative contracts. Singapore-based 3AC owes about $6 million to BitMEX, one of the sources said. According to a second source, the effect on FTX was “insignificant,” and Deribit, which has investors including 3AC, had only taken a “small” loss.

The Block has confirmed that 3AC’s positions have been liquidated by BitMEX. They remained silent on the outstanding sum, but a representative from BitMEX’s legal team said they are in touch with 3AC regarding the next phases.

The Deribit team however declined to comment but said Three Arrows Capital is the shareholder of their parent company since February 2020. He said Debirit is in a stable financial position and has no immediate worries.

Bitfinex, another exchange where 3AC had traded, confirmed that the fund had closed its positions at a loss without having to be liquidated.

3AC has not responded. Neither Davies nor Zhu has made a statement about the situation. Several individuals said that they’d tried to contact them in recent days but had been unable to do so. However, Zhu had previously tweeted that they were in touch with key parties and fully committed to resolving the problem.

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