TechFlow News — BlockFi CEO Zac Prince tweeted that BlockFi has taken action against a large client that recently failed to meet its obligations on an over-collateralized margin loan. The company has fully accelerated the loan and completely liquidated or hedged all related collateral. Customer funds remain unaffected. He also stated that BlockFi was among the first counterparties to act against this institution. Additionally, to meet growing demand from institutional borrowers, BlockFi has adopted a floating interest rate mechanism similar to those in traditional markets such as U.S. Treasuries. Due to current market stress conditions, BlockFi will raise its lending rates effective July 1. During this period of market volatility, BlockFi will continue to honor all withdrawal requests in accordance with its terms of service.
It is reported that market rumors previously indicated Three Arrows Capital, which has recently been facing liquidity issues, held a loan position at BlockFi.
