On June 16th, 2022 – it was announced that Finblox, a high-yield cryptocurrency savings platform – had ceased normal operations of their platform and restricted user withdrawal limits to lower-than-usual levels.

This was largely attributed to the potential insolvency of Three Arrows Capital (3AC), which had reportedly incurred at least $400 million in liquidations in the past month. 3AC was one of many investors in Finblox, as well as one of the largest crypto institutional borrowers. Among other impacted platforms, Finblox was one of the first to publicly announce the impact of 3AC on the liquidity. 

After receiving more definitive news, Finblox decided to impose a temporary withdrawal limit of $1500/month equivalent to allow users partial access to their funds while balancing issues with liquidity, and pursuing fund recovery from 3AC. 

Since then, the platform has managed to maintain a constant level of communication with its users in spite of the crisis.

A portion of stablecoins were affected among the 20 crypto assets available on the platform, and Finblox has announced the following actions towards recovery and restoration of normal operations:

• Increasing the previously imposed restrictions on withdrawal limits to 50K/day and 500K/month starting July 5th
• Restoring yield generation on unaffected assets and referral program rewards
• Pursuing all avenues to secure user funds, including exploring legal options

“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. As a relatively young and growing platform in the space, we were impacted by this event at an early stage and truly appreciate our users’ support during this time, whilst we continue with our efforts to continue growing the platform.”– Peter Hoang, CEO of Finblox