According to Babel, the agreements have reportedly eased some of its "short-term liquidity pressure."
On June 20, Hong Kong’s crypto lender Babel Finance announced that it successfully managed to find a compromise with several of its counterparties to ease its current troubling liquidity situation.
The news comes after the company previously announced that it would be pausing all of its withdrawals and redemptions due to “unusual liquidity pressures” amid the harsh crypto market conditions.
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According to the official statement, Babel Finance mentioned that several steps have been taken to alleviate liquidity pressures. For instance, the company will go through the evaluation of its business operations, arrive at particular agreements “on the repayment period of some debts”, and constantly communicate with other counterparties, including investors and a number of shareholders.
“Given the current context of severe market volatility, Babel Finance’s management will continue to communicate closely with customers, counterparties, and other partners, and provide updates in a timely and transparent manner.”
Hong Kong’s crypto lending firm also reassured investors that it will “actively fulfill its legal responsibilities” to users of the platform and make sure that all liquidity risks are resolved. The team behind Babel Finance added:
“We thank our customers for their understanding and support during this period, and hope to obtain further support from our partners.”
Currently, Babel didn’t disclose when the platform would resume withdrawals, however, the CEO and co-founder of Babel Finance Flex Yang said that any information regarding the situation will be updated as soon as possible.
Earlier this year, the leading crypto financial services provider in the world successfully managed to raise $80M in a Series B fundraising round. Back in 2021, Babel Finance also cashed in $40M in a Series A funding round that was led by Dragonfly Capital, Tiger Global Management, Zoo Capital, and Sequoia Capital China.
Actually, the news arrives during troubling times for a number of different crypto-related companies. For instance, earlier in June, Celsius reported that it would be pausing all withdrawals and transfers between accounts due to the current harsh crypto market conditions. On the other hand, a crypto staking platform Finblox significantly tightened its daily and monthly withdrawal limits.