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Oliver Knight
Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
Crypto staking and yield generation platform Finblox has imposed a $1,500 monthly withdrawal limit and paused rewards in light of uncertainty surrounding crypto hedge fund Three Arrows Capital.
- According to a statement shared on Twitter, Finblox has made the changes as it evaluates the impact of Three Arrow Capital's reported issues.
IMPORTANT UPDATE FROM FINBLOX! pic.twitter.com/VjclRMMiSe
— Finblox (@finblox) June 16, 2022
- It was reported on Wednesday that Three Arrows Capital is facing possible insolvency after incurring at least $400 million in liquidations.
- The hedge fund made a $3.6 million investment in Hong Kong-based Finblox last December.
- "We have been cooperating with over eight partners and protocols, including Three Arrows Capital, to generate yields and spread the risk as evenly as possible," the statement read.
- "Finblox will do everything in its power to protect users' funds and reinstate our services in full," it added.
- The Finblox website states that it offers "peace of mind with $45M insurance on assets."
- Rival interest-earning platform Celsius recently paused withdrawals, citing extreme market conditions.
