Finblox Increases Withdrawal Limits Following 3AC Assessment

The crypto staking app heavily restricted withdrawals after Three Arrows Capital’s troubles first came to light

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • Finblox announced Thursday that it will restore staking reward payouts and increase monthly withdrawal limits
  • The move follows a British Virgin Islands court ordering 3AC into liquidation earlier this week

Crypto yield generator Finblox is rolling back withdrawal limits imposed earlier this month as digital asset markets reeled from the potential insolvency of Three Arrows Capital.

Hong Kong-based Finblox first imposed a $1,500 cap on monthly withdrawals on June 16 and suspended staking rewards when major crypto hedge fund firm 3AC’s financial strife first came to light.

Following 3AC’s ordered liquidation from a British Virgin Islands court earlier this week and Finblox’s assessment of the firm, the crypto savings platform reckons the coast is clear and plans to boost its monthly withdrawal limit to $30,000 starting July 1 — and up to $500,000 after July 5 for verified users. 

Daily withdrawals will initially be capped at $3,000 per day before rising to $50,000 alongside monthly limits.

Loading Tweet..

Finblox paused yield payments on a raft of stablecoins among the 20 cryptoassets available on the platform, but Peter Hoang, CEO of Finblox, told Blockworks that stablecoins weren’t the main draw for most of its users, who are mainly based in Southeast Asia.

In a statement, the platform said it will restore rewards tied to its referral program. Starting July 1, it will also increase the existing yields, including 4% on bitcoin, 4.3% on ether, 4.3% on USD Coin (USDC) and 3.9% on tether (USDT). 

For now, the firm is allowing users more to access their funds while the Finblox team continues working with parties spurned by 3AC, Hoang said. 

Founded in 2021, Finblox helps investors buy and earn yield on crypto. The company raised $3.9 million in a seed round last year from a collection of venture capital firms, including 3AC, Coinfund and Sequoia Capital India.

“I think unsecured lending will be less common in the future,” Hoang told Blockworks. “Given even the largest players were engaged in that…from a risk management perspective, it doesn’t matter how big or well established your counterparties are, there has to be prudent risk management going forward,” he said.

“Three Arrows Capital was considered blue-chip, and among the largest and most trusted players in the crypto lending space just a few weeks ago. It is a Lehman moment for the industry — no one is too big to fail,” Hoang added in a statement following his interview with Blockworks.

Facing a liquidity crunch of its own, Finblox rival Celsius paused withdrawals, swaps and transfers between accounts, citing “extreme market conditions” earlier this month, just days before 3AC’s troubles stirred turbulence across digital asset markets.

While handling the operation restoration, Hoang said his firm is looking to begin operating its own launchpads for crypto projects. Debit and credit card which will likely happen in 2023, according to the fintech veteran.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 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.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Crypto continues to do its thing: incentivizing behavior

article-image

Kraken will soon offer Backed ‘xStocks’ as Solana tokens

article-image

In a unanimous decision, the US Court of International Trade has ruled that Trump’s IEEPA tariffs are unlawful

article-image

The platform has over $22 million in assets and allows anyone to invest in tokenized real estate

article-image

Crypto games can face financial losses if they don’t take steps to squash bot accounts

article-image

Strive board member Ben Werkman expects thousands of firms to hold BTC, if only “to protect themselves”