Backed by the investment fund Three Arrow Capital currently in turmoil, Finblox has announced a series of measures binding on its users.
More and more links are beginning to be established between the players in the crypto ecosystem. Indeed, the collapse of the Terra blockchain during last month's crypto-crash – which notably had the consequence of destabilizing certain tokens including the stETH – is leading to its downfall of other players.
After the Celsius lending platform that has been freezing the funds of its 1.7 million users since Monday, it is the turn of the lending platform (also called staking platform) Finblox to be in bad shape.
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As a reminder, a staking service is a loan of cryptocurrencies on a blockchain for interest. Founded in 2020, Finblox, which claims 15,000 users, offers returns on 23 crypto-assets, some varying from 5% for bitcoin or ether, 12% for binancecoin or up to… 90% on Axie Infinity.
On Thursday, the lending platform announced restrictive measures for its users, in a context of falling in the cryptocurrency market. It now imposes a withdrawal limit on its users ($500 per day, $1,500 per month), and has had to stop the distribution of rewards. Until now, users could withdraw their funds, "at any time". This is what is always written on its site, at the time of writing this paper.
Why did it take such a step? The company is linked to Singaporean investment fund Three Arrow Capital (3AC), whose solvency issue was raised after the fund liquidated a $400 million position. The fund finds itself in turmoil for many reasons, in a general context of falling in the cryptocurrency market, including that of having invested in the Terra blockchain that collapsed last month.
Several large investors in the capital
3AC, which manages $10 billion, had invested in many companies in the crypto ecosystem… including Finblox. Finblox was backed by other big investors, such as US venture capital giant Sequoia.
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"We have cooperated with more than 8 partners and protocols, including 3AC, in order to generate returns and spread the risk as fairly as possible," admits Finblox. "Finblox will do everything in its power to protect our users' funds and restore our services in their entirety," the company said.
As a reminder, on Monday, the American cryptocurrency lending and staking platform Celsius, which claims about $ 12 billion in assets under management, announced that it no longer allows its clients to withdraw or transfer their funds in cryptocurrencies.
On Thursday, Celsius broke the silence, saying it was working 24 hours a day to solve the problem, trying to answer some of its users' questions. But the time is starting to get long for its users who find themselves in a dead end.
Pauline Armandet
source: https://www.bfmtv.com/crypto/blockchain/apres-celsius-la-plateforme-de-prets-en-cryptos-finblox-est-a-son-tour-mal-en-point_AV-202206170324.html