Crypto fund Babel Finance stops withdrawals due to major liquidity pressures and it announced it will block the customers from pulling out their assets after the crypto market crash so let’s read more today in our latest cryptocurrency news.
Babel Finance stops withdrawals and became the latest crypto lending platform to suspend withdrawals and the company stated it is facing unusual liquidity pressures amid the broader crash in the crypto prices due to a lack of available assets readily on hand as the basis of the decision to prevent the customers from pulling out their money from their accounts. Babel Finance noted:
“Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events.”
Babel Finance follows the same move that Celsius did which also announced that it will prevent customers from withdrawing or transferring funds as the positions in Lido Stakes also came under threat when the stETH lost its peg. The ripple effects from the de-pegging continued to spread with the crypto hedge fund Three Arrows Capital facing questions over insolvency. Babel Finance stated that it is in close communication with the related parties about the details of the steps that it is undertaking to resolve this issue as it tries to get the finances in a stable shape and protect customers.
Babel Finance also recieved a valuation of $2 billion after an $80 million Series B Fundraising and in a statement the company billed itself as the world’s leading wholesale financial services provider. At the end of 2021, the company had huge loans totaling $3 billion and saw $800 million in monthly trading volume in the derivatives financial contracts based on the underlying asset value. It then structured and traded over $20 billion in option products by that time. The platform had about 500 customers and served a select clientele and also it grew from 50 people to over 170 employees after it opened a new office in Singapore.
In its latest round of funding, it managed to secure partnerships with Zoo Capital, Tiger Global Management, and Sequoia Capital China.
As recently reported, The troubled crypto lending platform Celsius Network is not getting bailed out according to reports that we are reading today. The Major Canadian pension fund Caisse de depot et placement du Quebec and New York-based WestCap Group previously led the oversubscribed $750 million Series B funding round for Celsius last year which helped the company reach a valuation of $3.5 billion.
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