Contagion is spreading: Another centralised lender Sequoia backed Finblox is in deep trouble. After exposure to 3AC, they have paused rewards, and capped withdrawals to $500 a day and $1500 a month for all users.

Finblox is yet another lender who seems to have been affected due to the ongoing collapse of key centralised players and a large fund 3AC which has apparently blown up. Finblox was backed by large VCs like Sequoia and Dragonfly.

In a message to users, Finblox has informed them they are reducing withdrawal limits and cutting all rewards.

Finfblox: Withdrawals capped, rewards paused

Finblox claims to have insurance for its funds - not sure if its going to pay out at all. In the present situation, VCs coming to any startup rescue is pretty much off the table..

Its not clear which other operators are affected with the ongoing situation, one thing is certain - the contagion is deep and spreading quickly. 3AC was quite a big player who had commitments across multiple exchanges, lending services and market makers. Some trading desks have already sounded the alarm and have called back their margin.

Centralised entities continue to be very risky as of now.