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Bitcoin Businesses Technology

Finblox Imposes $1.5K Monthly Withdrawal Limit Amid Three Arrows Capital Uncertainty (coindesk.com) 62

Posted by msmash from the dominos dept.
Crypto staking and yield generation platform Finblox has imposed a $1,500 monthly withdrawal limit and paused rewards in light of uncertainty surrounding crypto hedge fund Three Arrows Capital, which made a $3.6 million investment in the Hong Kong-based platform last December. From a report: According to a statement shared on Twitter, Finblox has made the changes as it evaluates the impact of Three Arrow Capital's reported issues. It was reported on Wednesday that Three Arrows Capital is facing possible insolvency after incurring at least $400 million in liquidations.
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Finblox Imposes $1.5K Monthly Withdrawal Limit Amid Three Arrows Capital Uncertainty More

Finblox Imposes $1.5K Monthly Withdrawal Limit Amid Three Arrows Capital Uncertainty

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  • Run on the bank (Score:4, Insightful)

    by Anonymous Coward on Thursday June 16, 2022 @11:42AM (#62625360)

    Wasn't this one of the problems crypto was supposed to solve?

    • Oddly enough, no.

    • Re:Run on the bank (Score:5, Insightful)

      by MightyMartian ( 840721 ) on Thursday June 16, 2022 @12:22PM (#62625450) Journal

      These companies are essentially unregulated banks, so when the amount in deposits exceeds their actual capacity to give depositors back their money, just like banks in ye olden days, they can become quickly insolvent if there is a run on their deposits. It's why pretty much every jurisdiction in the developed world has laws to require financial institutions are insured, and that banks have sufficient cash on hand to allow a some significant fraction of depositors withdrawing their funds.

      We're literally watching the Bedford Falls Saving and Loan trying to restrain depositors from pulling out their money, except in this case it isn't nice honest George Bailey just trying to keep papa dollar and momma dollar in the safe to make new baby dollars, it's a pack of Crypto Bro con artists who have finally reached the end of the con.

    • Finblox: The RobinHood of the cryptocurrency scam.

    • Privacy (Score:1)

      by Anonymous Coward

      It's just a privacy feature. If you can't access your money then you can't spend your money and if you can't spend your money then the evil government can't find out what you spend it on. Personally I think the limit should be set at zero for complete security, but I think that's coming next week.

    • Well "crypto" does not exist in isolation but in itself "crypto" does solve this when everything is working probably. Note that fees can skyrocket (it seems) and transactions can fail and I think you still pay the high fee if the transaction fails. However in this case it is not a technology issue with "crypto" but a third party. If a third party holds your money or your "crypto" then getting it back is not normally a technology issue but convincing them to give it back.
    • To be fair, people with their own wallets don't have this problem. Even people with Coinbase accounts don't have this problem (there have been service interruptions in Coinbase but never an indefinite freeze of withdrawals). People who use Celsius or Finblox essentially gave their coins to some fly-by-night joint because fly-by-night joint offered impossibly high yields and pinky-promised that the coins will be totally safe in the process.

  • Tulips are blooming (Score:5, Funny)

    by Opportunist ( 166417 ) on Thursday June 16, 2022 @11:46AM (#62625376)

    And I have to admit, I like the beautiful colors.

  • Red flags everywhere (Score:5, Interesting)

    by enriquevagu ( 1026480 ) on Thursday June 16, 2022 @11:53AM (#62625390)

    One month ago, Coinbase warned [slashdot.org] that people might loose *all* of their money invested in "crypto" using their service.

    Three days ago, Celsius Network paused withdrawals and transfers [slashdot.org], effectively blocking your money (errm... "crypto assets").

    Today, this Finblox platform is restricting withdrawals beyond $1500/month. In one month, they will probably be out of the market, with the rest of your money.

    It is full of red flags, everywhere. If tomorrow you haven't sold your "crypto assets", you deserve losing them.

    • If tomorrow you haven't sold your "crypto assets", you deserve losing them.

      And... who's going to buy them?

    • How are you going to sell what you can't withdraw?

    • Re: (Score:2)

      by tlhIngan ( 30335 )

      In one month, they will probably be out of the market, with the rest of your money.

      No banker will go bankrupt themselves if they can avoid it. If that means screwing over your customers, so be it.

      That's why there are regulations and laws because we know people will purposely bankrupt other people in order to not bankrupt themselves.

    • Re: (Score:2)

      by gweihir ( 88907 )

      Yes. We are seeing a crash in progress. As this is an unregulated, basically lawless industry, they can do all the dishonest tactics traditionally used to slow things like this down. They cannot stop the crash though, because they have no real-world assets. Crapcoins are backed by absolutely nothing.

  • and they seem to be trying their damnest to keep it. Isn't unregulated securities fun?!

    Also, Crypto bros are trying to buy off state and federal politicians to prevent regulation. Don't let them do it. We'll end up with an unregulated banking system that'll collapse the economy like it did in the Great Depression. That will hurt you too. Badly.

    • Re:They've got your money (Score:5, Interesting)

      by sarren1901 ( 5415506 ) on Thursday June 16, 2022 @12:11PM (#62625426)

      Hmm it will kind of hurt me because no man is an island. I make sure my 401k is not tied to crypto and I haven't invested into it either. As an essential worker (grocery worker) I'm in a very resilient business that everyone will always have need of.

      I look forward to recessions and even depressions because I'm usually able to capitalize on these things and come out ahead. 2008 was awesome because I was then able to become a homeowner by 2010.

      If I was not so adverse to risks, I would of taken equity out of my home in 2020 and invested heavily in oil. I knew when oil was down around $30 a barrel that it would not stay that way. I decided instead to play things safe, got completely out of CC debt (now just cars/house) and things are going just fine. Had I taken that one risk I'm sure I could of at least doubled whatever money I invested.

      So look forward to these recessions and massive dips in the market, because they represent great opportunities if you can spot them.

      Another example. Remember when BP had that oil spill in the gulf of Mexico and their stock cratered? My boss at the time invested heavily into them when they finally bottomed out. Sure as rain, it came back plus a lot more. Made a fortune off that bet and it was a pretty common sense bet.

      • It wasn't a guarantee that disaster wouldn't have killed BP. There was no way of knowing what consequences they would of faced.

        • That's true but I guess my boss did his research and all signs indicated they were going to put on the responsible face and work to resolve the issue. This appearance of remorse and trying to clean it up I think is why the company came back from that mess.

          All investing has risks and you are right, it may not of come back.

          I still feel a small bit of regret for not investing in oil in July 2020 when it was around $25-$30 a barrel. I was happy to be completely out of cc debt (wife's cards too) due to the sheer

    • Re: (Score:2)

      by Luthair ( 847766 )
      I'm guessing they don't have it either - these companies have been gambling the holdings by lending it to other risky players and what is happening now is those players are defaulting.

  • As much as I am enjoying the vindication the crypto-coins are worthless, not a hedge against a weakening dollar, nothing more that a wildy speculative bet fueled by to much liquidity in 'better money'

    I can't say its worth suffering the (all be it much less) decline in the value of my asset holdings. I don't think the crypto-bros deserve to win, by any stretch but its not worth the pain everywhere else to see them wiped out. Its not that great a show.

    • I agree with your general sentiment, but I'm not sure I share the conclusion. Crypto may have been used to secure some big loans and thus might be systemically important. However, I feel like equities and bonds have done plenty to make their own bed. ZIRP, Freemoney, and QE have helped stocks tremendously and the withdrawal of those drugs is probably not a light impact comparative with crapto-crash. Plus, one way or another all this economic poison has to be metabolized.
    • That's the fundamental truth that I think is missing from our civilization. When someone makes a mistake, especially a financial one, everyone wants to blame that individual. And yeah there are plenty of cases where the individual is at fault such as a certain foolish CEO who overpaid for a social media company and is cratering the stock of their real companies...

      But the key difference there is that CEO wasn't under any real pressure. At no point did they Wonder what they were going to do when they were
    • I most likely have this wrong, but I find it hard to consider something that you can't sell as having "too much liquidity"
    • I don't think the crypto-bros deserve to win, by any stretch but its not worth the pain everywhere else to see them wiped out.

      This is capitalism. Some win, some lose (the correct spelling). No one should be protected in this situation since the entire premise of crypto was to be outside the regulated banking industry. People would be free to use their money however they wanted without governent interference.

      And here we are without government interference. Exactly as planned.

      And for the re

    • Re: (Score:2)

      by gweihir ( 88907 )

      There never was an alternative to them getting wiped out. Better now than later.

  • Well, at least they are living up, or rather, down to their name now.

  • Banks let you withdraw up to $400 per day in cash. Allowing only $1500 per month is tiny for anyone with any amount of money invested. If someone had $100K (foolish, I know!) it would take more than 5 years to get your money out. This effectively ensures that only "play money" will be put in, probably not a bad thing.

    • Re:Tiny amount (Score:4, Insightful)

      by Ed Tice ( 3732157 ) on Thursday June 16, 2022 @12:31PM (#62625470)
      What are you talking about? My ATM card has a limit of $400/day in cash but I can walk up to a teller and get at least $5k in cash. I can get significantly more in cash if I give 24 hour notice. And I can get every single penny in the form of a wire transfer or cashiers check on no notice. Where did you ever get such an idea?
      • Yeppers, we all remember Dennis Hastert. https://www.npr.org/2015/05/29... [npr.org] He was pulling 50 grand at a time until it was triggering questions and then dropped it to the just under 10K per time. And that causes even more problems as he was trying to evade the bank reporting. I think I have pulled 1K out at a whack for trips.

        • I've pulled out $10K for overseas trip to visit in-laws, half carried by me and half by spouse. That's how they roll in some countries, U.S. dollars always welcome but you better have a pile of them for a month trip.

        • I think my record was $40,000 in one go. Teller just asked "buying a car?"

          Just nod and the concern goes away...

      • Re:Tiny amount (Score:4, Interesting)

        by Ogive17 ( 691899 ) on Thursday June 16, 2022 @03:02PM (#62625860)
        After I sold my house last year, I wanted to close out the checking account I used at the bank that held the mortgage. I had just under $10k in the account. They were simply going to give me a cashier's check but the printer was not working.

        I walked out of that bank with $10k in cash and an elevated heart rate. Luckily my other bank was just across the street so I could quickly make a deposit. I will most likely never have that much cash in my hand ever again.
        • Yeah, I once helped my sister by a car from a friend who was moving overseas and the seller wanted paid in cash to take with her. It was just over 10k and yeah I had it in a bank envelope and was very glad when the transaction was finished and that much cash wasn't my problem anymore.

    • You bring up irrelevant thing. I've written checks for automobiles and tuition in excess of $15K, no problem

      • What they are suggesting is that you could in the future only withdraw $1.5K in any given month. How would you buy your car then?

    • I don't know about your bank, mine lets me withdraw any amount up to 10k a day in cash if I so please. They give me more than 10k too, but at a fee, if I don't want to pay that fee, I need to give them a one day heads-up, so they have the required amount of cash lying around (banks usually don't do that unless they have to, cash is basically dead money they can't use for something else, so there's surprisingly little cash in the average bank at any time).

      If I don't need cash, I can transfer any amount I hav

      • Your point makes the contrast even more stark. So you can take out 10K per day from your bank. This proposal would limit your crypto withdrawal to 1.5K per month. Not a whole lot of money!

    • Re: (Score:2)

      by gweihir ( 88907 )

      Not true. You can get more if you go there in person (larger amounts of cash usually have to be pre-ordered because they do not have them in-house) and if you want to go over the monthly withdrawal limits (depends on the type of account, but often is something like 100k per month or unlimited), you just pay some small fee. Basically you get a fully insured minimal-rate loan from the bank backed by your own money. You can also always just terminate the account, with the same effects.

      In the crapcoin case, the

  • Matt Damon would make another crypto commercial. Surely that would right the ship!

    Nah but seriously, you crypto bros are fucked. And there was much rejoicing.

  • Now that crypto currencies are finally crumbling, will GPUs get affordable again finally?

  • Well, the crypto-morons will find out that their scam works just the same as any other organized financial scam and in the end it all comes crashing down. Hopefully this will happen now so the sane part of the human race can go back to ignoring this crap.

  • In 2008 banks got in trouble for investing in derivatives. Then they were found to be baseless gambling.

    Crypto (fortunately not as popular with banks) is the new gambling platform. Very high risk gambling / ponzi scheme.

  • Just so glad there is no central authority controlling cryptocurrency. Everything is free and open to the influences of the market...

    Oh, wait.

    Never mind.



    Just had a flash back to Gilda Radner's Roseanne Roseannadanna character.

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