Babel Finance, a crypto finance company based in Hong Kong, has suspended operations on its platform. Accordingly, users cannot perform crypto money transactions through the application as of now. After the event, the company made a post to announce the reason for suspending crypto transactions. Accordingly, the platform is experiencing “extraordinary liquidity problems”. We have compiled the details for you.
Cryptocurrency platform has stopped payments and withdrawals
Babel Finance released the announcement to its users on its official website today. Hong Kong-based crypto financial services company announced that it is suspending operations due to intense volatility in the cryptocurrency markets. Discontinued transactions included making payments with cryptocurrencies and withdrawing assets. “Recently, the crypto market has seen huge fluctuations,” Babel Finance said in a statement on its website. In addition, some institutions in the sector experienced extremely risky events.” The company also stated that it is in close communication with “all interested parties” on the subject. He also said that he is doing everything he can to best protect his users. The company’s full statement was as follows:
“Due to the current condition, Babel Finance has started to experience unusual liquidity problems. We are in close cooperation with all relevant parties regarding the steps we take to best protect our customers. During this time, payments and withdrawals from Babel Finance products are temporarily suspended. However, we will also let you know when service will return to normal.”
What is Babel Finance?
Founded in 2018, Babel Finance offers crypto lending, asset management and financing services to institutional investors. However, it is recognized in the industry as a major crypto financial services provider. The company’s portfolio managed to generate $8 billion in average monthly trading volume. Additionally, it raised $40 million in a Series A funding round in early May 2022. funding round; It was managed by companies such as Zoo Capital, Sequoia Capital China, Dragonfly Capital, and Tiger Global Management.
Cryptocurrency crisis deepens
Babel Finance has stopped withdrawals. Thus, it entered the growing list of crypto lending firms that are experiencing major problems due to the current market conditions. As Cryptokoin.com reported, cryptocurrency deposit and lending platform Celsius officially stopped withdrawals on its platform on June 13. Accordingly, Celsius was one of the first firms to point out the ongoing crypto loan crisis.
Celsius was followed by giant crypto hedge fund Three Arrows Capital (3AC). The company started selling Lido Staked Ethereum (stETH) and ETH assets to pay off debts. The fund, which has $18 billion in asset management, is on the verge of bankruptcy. If this happens, another new event will occur that causes the cryptocurrency market to crash.
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