Crypto Firm Babel Finance Suspends Withdrawals

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Hong Kong-based Babel Finance is the lat­est cryp­to firm to face mar­ket head­winds after it sus­pend­ed with­drawals and redemptions.

Babel Finance tem­porar­i­ly sus­pend­ed with­drawals and redemp­tions of cryp­to assets, accord­ing to a state­ment, due to liq­uid­i­ty pressures. 

«Recent­ly, the cryp­to mar­ket has seen major fluc­tu­a­tions, and some insti­tu­tions in the indus­try have expe­ri­enced con­duc­tive risk events. Due to the cur­rent sit­u­a­tion, Babel Finance is fac­ing unusu­al liq­uid­i­ty pres­sures,» the firm said.

Cryp­to Troubles

After peak­ing at around $2.9 tril­lion in Novem­ber last year, cryp­to mar­kets have tum­bled more than two-thirds to around $900 bil­lion. In addi­tion to a chal­leng­ing macro envi­ron­ment, cryp­tocur­ren­cies have faced oth­er pres­sures includ­ing the col­lapse of sta­ble­coin Ter­raUSD and a recent with­draw­al freeze at cryp­to lender Cel­sius Network. 

Found­ed in 2018, Babel today has 500 clients along­side $3 bil­lion of loan bal­ances with a focus on bit­coin, ethereum and sta­ble­coins. It raised $80 mil­lion in the most recent fund­ing round last month, valu­ing the firm at $2 billion.

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