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.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit