Finblox Imposes Withdrawal Limit Amid 3AC’s Uncertainty

The crypto staking and yield generation platform imposed a $1,500 monthly withdrawal limit and paused reward distribution

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • Finblox announced Thursday it will impose a $1,500 monthly withdrawal limit and pause reward distribution amid Three Arrows Capital’s crisis
  • The news came after Wednesday’s report that 3AC is facing potential insolvency after a $400 million liquidation

Crypto yield generator Finblox imposed its first monthly withdrawal limit — a relatively paltry $1,500 — and tapped the brakes on divvying out staking rewards as markets continued to froth and foam in the wake of the possible insolvency of longtime digital assets-focused hedge fund firm Three Arrows Capital (3AC). 

This move came after Wednesday’s report that 3AC is facing potential insolvency after a $400 million liquidation. Finblox raised a $3.9 million seed round in March — investors such as 3AC, MSA Capital and Coinfund participated in the round. 

Loading Tweet..

In a statement, the platform said it made the changes while “pursuing all available options to evaluate the effect of 3AC on the liquidity.” 

“This set of actions is a necessary move in such a highly volatile market and we believe should help us and our community to manage the effect,” Finblox said.

Other changes Finblox announced include delaying referral programs and disabling the creation of crypto addresses for newly registered users. 

“Finblox will do everything in its power to protect users’ funds and reinstate our services in full,” the statement said. 

Founded by fintech veterans Peter Hoang and Dmitriy Paunin in 2011, the platform helps investors to buy and earn yield on crypto, such as 5% on bitcoin and ether and 12% on stablecoins USDC and USCT

A spokesperson for the company didn’t immediately respond to a request for comment. 

Last Sunday, Finblox rival Celsius paused withdrawals, swaps and transfers between accounts, citing “extreme market conditions” — and triggering the second broad-based market meltdown in as many months. 

Other crypto banks in short order worked to publicly distance themselves from Celsius amid the blowback.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

RTK networks are critical to enabling a world of ubiquitous autonomous drones, vehicles, and industrial robots. We believe the GEOD token enables both a cost and product advantage for the GEODNET RTK network, which will allow it to out-compete multi-billion dollar incumbents Trimble and Hexagon.

article-image

Hunter Horsley says Solana is one of this cycle’s breakout successes that he thinks clients will want to access

article-image

SOL has climbed more than 2,000% in the past two years

article-image

MicroStrategy founder Michael Saylor alluded to Marathon’s CEO during a X Spaces on Tuesday

article-image

Crypto’s calls are equally as juiced as puts, creating a “smile” in the volatility surface

article-image

Turns out that owning the end-user via a crypto wallet is quite a prosperous business

article-image

The announcement followed growing speculation that Gensler would announce his exit before Trump takes office next year