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

·1-min read

Don't miss CoinDesk's Consensus 2022, the must-attend crypto & blockchain festival experience of the year in Austin, TX this June 9-12.

Crypto 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," Finblox CEO Peter Hoang said.

  • 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 the 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 Global Trading 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. (Genesis is owned by Digital Currency Group, which is also CoinDesk's parent company.)

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