BlockFi, a cryptocurrency lender, said on Thursday that it has liquidated a "major client" and taken "decisive" risk mitigation measures in compliance with its contracts with specific counterparties. While the lender has not named the client, it comes amid claims that Three Arrows Capital (3AC), a crypto hedge fund and venture capital firm, was the counterparty involved. BlockFi CEO Zac Prince tweeted late Thursday,

https://twitter.com/BlockFiZac/status/1537499455007645696?s=20&amp;t=B0FtA-9rIjq6dflywxmRFA

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A shaky market is causing issues for some of the industry's most well-known brands, such as interest yield-earning platform <a href="https://www.cryptoknowmics.com/news/bitboy-founder-threatened-to-sue-celsius-in-a-class-action-lawsuit/" target="_blank" rel="noopener">Celsius</a>, which has restricted user withdrawals and transfers due to harsh market conditions. Some crypto companies cannot pay their obligations to lenders due to a liquidity issue.
<h2>BlockFi Took The First Action</h2>
BlockFi was one of the first to take action with the unnamed counterparty. Therefore, client funds are unaffected, Prince stated in a follow-up tweet. By publication, <a href="https://blockworks.co/" target="_blank" rel="nofollow noopener">Blockworks</a> has not received a reaction from BlockFi.

https://twitter.com/BlockFiZac/status/1537499456349798406

Following a $400 million liquidation by top-tier lenders, embattled firm 3AC is said to be approaching insolvency. According to reports, 3AC had limited contact with the counterparties concerned. Blockworks contacted 3AC but received no response. Some speculate that 3AC dumped large amounts of stETH at a discount to finance its debts. Due to its involvement in the now-defunct Terra ecosystem and illiquid investment in staked ether (stETH) via the Lido Finance protocol. Some speculated that the firm was underwater due to its involvement in the now-defunct Terra ecosystem and illiquid investment in staked ether (stETH) via the Lido Finance protocol.

Amid 3AC's Margin Calls, BlockFi Says It Has Liquidated A "Large Client"

BlockFi said that it has liquidated a "major client" and taken "decisive" risk mitigation measures according to its contracts with specific counterparties.

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Amid 3AC's Margin Calls, BlockFi Says It Has Liquidated A "Large Client"

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