Finblox withdrawal restrictions trigger concerns from the community

In a tweet, Finblox announced that the firm is assessing the effects of 3AC’s situation on its liquidity. While the firm does this, it highlighted that it paused its reward distribution for all of its users and lowered its monthly withdrawal limit to 1,500 USD.

Many of the platform’s users were disappointed with the news, sharing their frustrations about not being able to withdraw their funds. On the other hand, community members started calling out Finblox’s 90% Annual Percentage Yield (APY) offer on staking Axie Infinity Shards (AXS) as unsustainable.

According to Finblox user Terence Lee, he has withdrawn his assets from Finblox during the Terra (LUNA) collapse. He noted that it’s becoming more clear that lenders who offer large returns were “taking too much risk.”

In response to the current situation, Twitter user Gofortim2 called out to lending platforms to be more transparent. They tweeted:

Finblox, a crypto-staking platform backed by Three Arrows Capital (3AC) has paused reward distributions and tightened its withdrawal limits. Following this, community members expressed concerns over their assets, with some calling for transparency and bringing up decentralization.

Additionally, the Twitter user noted that it may be time for firms to lower their APY rates as it has become an ineffective tool for attracting users, now that users are fearing for the safety of their assets.

Related: Su Zhu’s cryptic statement as rumors swirl of 3AC liquidations and insolvency

On June 16, the CEO of 8 Blocks Capital, Danny Yuan publicly called out platforms that hold assets that are owned by 3AC, requesting them to freeze the company’s funds. Yuan claimed that they detected a sum of $1 million missing from their accounts with 3AC.

Meanwhile, a report noted that the firm borrowed Bitcoin (BTC) from lending platform BlockFi and was not able to meet a margin call, following the market’s downturn this week. Some even estimate that 3AC has gotten liquidated by $400 million in multiple positions.

All Dutch and English crypto news!

Central African Republic president launches crypto initiative following Bitcoin adoption

Faustin-Archange Touadéra, president of the Central African Republic, has announced the government will be backing an initiative centered around developing the country's blockchain infrastructure. In a...

‘Crypto is just like the end of the 90s with the internet bubble,’ says Hodl CEO Maurice Mureau

For Maurice Mureau, CEO of crypto investment fund operator Hodl, there's "not a lot left" to invest in anymore. With soaring inflation, bonds are no...

Final Capitulation — 5 reasons why Bitcoin could bottom at $10,000

Bear markets have historically been challenging to navigate for traders and the conventional set of "reliable" indicators that determine good entry points are unable to...

Crypto exchange FTX is looking into acquiring Robinhood: Report

Cryptocurrency derivatives exchange FTX is reportedly eyeing a takeover of Robinhood Markets, the popular trading app that introduced millions of traders to Bitcoin (BTC), Ether...

Beste exchanges

Koop je crypto bij Bitvavo