Finblox has placed a $1,500 monthly withdrawal cap and suspended rewards due to uncertainty around hedge fund Three Arrows Capital.
Cryptocurrency staking and yield generation platform Finblox invested about $3.6 million in cryptocurrency hedge fund Three Arrows Capital (3AC) in December 2021. Until mid-June, Finblox had no claims against Three Arrows for the performance of contractual obligations.
However, against the background of information about the possible financial distress of Three Arrows Capital, the Finblox platform decided to suspend the payment of remuneration to all clients of the company.
The restrictions affected the Finblox referral program, deposit payouts and the transaction limit for newly registered users of the platform.
Finblox said in a statement that the company is “closely monitoring market conditions and numerous media reports regarding the situation at Three Arrows Capital. Based on the information received, the staking platform has taken a forced decision to protect user funds and restore the full range of services.”
It is assumed that 3AC’s financial problems were the result of the suspension of operations and the possible insolvency of another crypto lender, Celsius. This company has managed billions of dollars of user funds, but may no longer have enough capital to pay back investors.
