The decline sequence that started with Bitcoin falling below $ 35 thousand accelerated with the collapse of Terra and the markets fell below $ 1 trillion. Cryptocurrency companies also had to act within their limits in the market. The crypto lending platform Babel Finance, on the other hand, lost close to $280 million in trading with client funds.
Babel Finance Trying to Raise Funds
According to the news published in The Block, Babel Finance, which previously suspended withdrawals, entered a troubled period due to trading with customer funds. Babel Finance lost 8,000 Bitcoin and 56,000 Ethereum (about $280 million) in leveraged trading with client funds.
The company, which has also lost its top employees, is trying to convert hundreds of millions of dollars of debt into equity and raise more funds in a credit facility.
Babel Finance shared its statements on the subject as follows:
During the volatile week of June, when BTC fell rapidly from 30,000 to 20,000, there were significant losses in unhedged positions in proprietary trading accounts, which led to the forced liquidation of multiple trading accounts and lost 8,000 BTC and 56,000 ETH.
The difficult conditions of Babel Finance, which suspended the withdrawals of its customers and then provided a new fund of $ 80 million, first affected its employees. But this time, the company’s situation will significantly affect its customers.
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