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Finblox Raises Withdrawal Limit, Explores Legal Action Against Three Arrows Capital


www.coindesk.com 01 July 2022 12:38, UTC
Reading time: ~2 m

Cryptocurrency staking platform Finblox raised its daily withdrawal cap to $3,000 with an additional increase to $50,000 planned next week for verified users, a spokesperson told CoinDesk via email.

The decision comes two weeks after the company imposed a $1,500 limit as a result of its exposure to hedge fund Three Arrows Capital.

Three Arrows Capital faced a flurry of liquidations in June, incurring at least $400 million in losses from crypto lending firms. Finblox named the hedge fund as one of its counterparties in an update on June 16.

“We are doing everything in our power to restore faith in our platform, unlock the access to the users’ funds affected by this market event and complete the return to normal operations," said Finblox CEO Peter Hoang.

Finblox has sent "multiple demands" to Three Arrows Capital since then, requesting that the entire loan is repaid in full. It is also seeking legal counsel on recovery of funds.

The staking platform also reinstated referral program rewards, payouts and yield generation.

Finblox is one of many platforms that have been hit by the market downturn and subsequent downfall of Three Arrows Capital. Crypto lender Genesis is reportedly facing "hundreds of millions of dollars" in losses while rival lending platform Celsius halted withdrawals as it failed to deal with the pressure of a corrective market.

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