Hong Kong-Based Crypto Lender Babel Finance Pauses Withdrawals and Redemptions

Hong Kong-Based Crypto Lender Babel Finance Pauses Withdrawals and Redemptions

The firm mentioned that it is closely communicating "with all related parties and will share updates" shortly.

On June 17, crypto lending platform Babel Finance issued a statement, indicating that the firm would be temporarily pausing its withdrawals and redemptions. The news comes amid harsh crypto market conditions as “some institutions in the industry have experienced conductive risk events.”

According to the official announcement, Babel Finance experienced some “unusual liquidity pressures,” however, the company is closely communicating with all people involved and promises to do everything in its power to protect the customers.

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Currently, it is not clear when the withdrawals and redemptions will recommence, “resumption of normal service be notified separately,” the platform added.

Hong Kong’s Babel Finance, founded in 2018, is one of the leading crypto lending firms that act as an intermediary between Asia and the West. The company focuses mostly on Bitcoin (BTC), Ether (ETH), and stablecoins, while serving around 500 clients.

At the end of 2021, Babel had a loan balance of over $3 billion, while at the beginning of this year, it managed to collect $40 million in a Series A funding round. Likewise, on May 25, the world's leading crypto financial services provider stated that it also raised $80 million in a Series B fundraising round.

In fact, Babel Finance is the latest to join the “withdrawal-restricting crypto firms” club. Earlier in June, Celsius reported that it would be pausing all withdrawals and transfers between accounts due to the current crypto bear market. For that reason, on June 14, the company reportedly hired restructuring lawyers to find solutions to its financial challenges.

Later this month, rival staking platform Finblox also made a similar announcement and stated that it would be tightening its daily withdrawals limits to $500, and monthly withdrawals to $1.5K.

Gyth L. - Crypto Analyst

by Gyth L. - Crypto Analyst, BitDegree


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