Finblox tweeted that it is currently assessing the impact of 3AC’s position on its liquidity. Finblox also noted that it stopped paying out rewards to all its users and reduced its monthly withdrawal limit from 1,500 USD to 1,500 USD.
Many users expressed disappointment at the news and shared their frustrations about being unable to withdraw funds. Community members began to criticize Finblox’s 90% Annual Yield (APY), for staking Axie infinity Shards. (AXS), as it was not sustainable.
Terence Lee, a Finblox user, said that he had withdrawn his assets from Finblox following the Terra (LUNA), collapse. He stated that large return lenders were taking too much risk and that they are now becoming less clear.
Gofortim2 on Twitter called for transparency in lending platforms to address the current situation. They tweeted:
Three Arrows Capital (3AC), has stopped paying out reward distributions to Finblox and increased its withdrawal limits. Community members raised concerns about their assets and called for transparency.
(2) Be transparent 100% of the time Honesty is key. It is impossible to determine how risky things really are if you make vague statements. Poor decisions would surface eventually so why bother even hiding things?https://t.co/STxjDFRVOu
— 0xTim.eth (@gofortim2) June 16, 2022
The Twitter user also noted that firms may need to reduce their APY rates because it is no longer an effective tool to attract users. Users are now concerned about the safety of their assets.
Related: Su Zhu’s mysterious statement amid rumors of 3AC liquidations or insolvency
Danny Yuan, CEO of 8 Blocks Capital called out platforms holding assets owned by 3AC on June 16 and requested that they freeze their funds. Yuan claimed they discovered $1 million missing from 3AC’s accounts.
A report said that the company borrowed Bitcoin (BTC), from BlockFi lending platform, but was unable to pay a margin call due to the market downturn. Many estimates suggest that 3AC was liquidated at $400 million through multiple positions.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.