Roehl Niño Bautista · · 2 min readHK crypto platform caps monthly withdrawals at $1.5k amid Three Arrows Capital turmoil
Finblox, a Hong Kong-based crypto platform, has placed a withdrawal limit of US$500 per day and up to US$1,500 per month for users as it gauges the effects of issues surrounding Three Arrows Capital (3AC), a crypto hedge fund and one of the company’s investors.
Finblox founders Peter Hoang (left) and Dmitriy Paunin / Photo credit: Finblox
The firm has also paused reward distribution on its platform, including those for referrals and deposits. It has disabled creating crypto addresses for new users.
The decision, however, has not been received well online, as it effectively locks those with larger accounts on its platform.
“We have been cooperating with over eight partners, including 3AC, to generate yields and spread the risk as evenly as possible,” said Finblox in a statement on Twitter.
Founded in December 2021 by Peter Hoang and Dmitriy Paunin, Finblox just raised US$3.9 million in a Sequoia-led round last March. It said that it offers up to 90% interest on cryptocurrencies like Bitcoin, Ethereum, Solana, Avalanche, and Axie Infinity Shards.
Hong Kong crypto firm 8 Blocks Capital has accused 3AC of swindling it for US$1 million, which the latter allegedly used for debt payment. The hedge fund, which also backed embattled Terraform Labs, is rumored to be at risk of insolvency after going through liquidations worth US$400 million.
See also: First Luna, now Celsius. What’s behind the latest crypto crisis?
Editing by Miguel Cordon and Lorenzo Kyle Subido
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