Hong Kong-based asset manager Babel Finance is the latest crypto
lending firm to signal the growing crisis of the cryptocurrency lending
industry amid the bear market.
Hong Kong-based asset manager Babel Finance is the latest
cryptocurrency lending firm experiencing some serious issues amid the
ongoing market downturn.
Babel Finance officially announced June 17 a temporary suspension of redemptions and withdrawals from its products, citing “unusual liquidity pressures.”
“Recently,
the crypto market has seen major fluctuations, and some institutions in
the industry have experienced conductive risk events,” the statement on
Babel Finance's website reads.
The firm said that it’s in close
communication with “all related parties” on the matter and is doing its
best in order to best protect its customers.
Founded in 2018,
Babel Finance is a major cryptocurrency financial services provider,
offering crypto lending, asset management and financing services to
institutional investors. The company’s portfolio generated $8 billion in
average monthly trading volumes. In early May 2022, Babel raised $40 million
in a Series A funding round led by companies like Zoo Capital, Sequoia
Capital China, Dragonfly Capital and Tiger Global Management.
By
halting withdrawals, Babel Finance joins the growing list of crypto
lending firms experiencing major issues due to the current market
conditions. The crypto staking and lending platform Celsius became one
of the first firms to signal the ongoing crypto lending crisis,
officially halting withdrawals on its platform on June 13.
source link : https://cointelegraph.com/news/crypto-lender-babel-finance-halts-withdrawals-due-to-liquidity-pressures
