Finblox raises withdrawal limit amid 3AC troubles

Starting July 1, the staking platform Finblox raised the withdrawal limit for verified users to $3,000 per day ($30,000 per month).

IMPORTANT ANNOUNCEMENT FROM FINBLOX ❤️ pic.twitter.com/Ks98RSTKpp

— Finblox (@finblox) June 30, 2022

Earlier, Finblox reduced withdrawal limits and barred new users from creating cryptocurrency addresses. This occurred simultaneously with the decision to BlockFi liquidate portion of the hedge fund Three Arrows Capital (3AC) positions, according to media.

Finblox is part of 3AC’s investment portfolio. According to Blockdata, the project attracted a total of $3.9 million.

From July 5, the platform will allow users who have completed KYC-verification (Verified Plus) to withdraw up to $50,000 per day. However, the monthly total should not exceed $500,000.

Finblox has also resumed the referral program and the distribution of rewards.

“We are doing everything in our power to restore trust in the platform, unlock access to user funds affected by this market event, and complete the return to normal operation,” said the company’s CEO Peter Hoang in a comment to CoinDesk.

In June, amid the collapse of the crypto market, rumors of the insolvency of Three Arrows Capital surfaced. Trading firm 8 Blocks Capital accused the hedge fund of using client funds to cover margin calls .

According to some reports, cryptocurrency platforms BitMEX, FTX and Deribit liquidated positions of 3AC amid the latter’s inability to meet margin requirements.

On June 27, the crypto broker Voyager Digital sent 3AC a notice of default due to non-payment of a loan.

Earlier, on June 29, it was reported that a Virgin Islands court liquidate Three Arrows Capital .

Blockchain.com and the Deribit platform confirmed that they had become creditors of the hedge fund , which had demanded such action.

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