The crypto yield generator is reportedly pausing rewards, capping withdrawals, and restricting the creation of new addresses on the platform amid 3AC’s troubling situation.
On June 16, Finblox, a crypto staking platform, stated that it tightened its daily withdrawal limit to $500 and imposed a $1500 monthly restriction. On top of that, the platform will reportedly delay its referral program and deposit rewards, as well as pause rewards distributions and take away the possibility to create new crypto-related addresses.
The news comes right after Three Arrows Capital (3AC), a crypto hedge firm, is approaching a collapse following a $400M liquidation.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Defi 2.0? (Explained with Animations)
According to the official tweet, Finblox believes that the actions taken are necessary to effectively measure what possible implications 3AC might have on liquidity. Furthermore, the withdrawal restrictions and other actions taken are the only way to survive the present crypto upheaval. The company explained:
"This set of actions is a necessary move in such a highly volatile market and we believe should help us and our community to manage the effect."
The crypto-staking platform also mentioned that it will ensure that all users’ funds stored on the platform will stay safe and sound.
Finblox, founded in 2011, is one of the leading crypto yield generators in the market that assists traders in buying and earning high yields on crypto assets, such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and others.
Earlier in June, the crypto exchange Celsius completely shut down all withdrawals and transfers between accounts on the platform amid the current crypto bear market. On June 15, the company hired restructuring lawyers to get professional advice on financial problems.