Hong Kong-based asset manager Babel Finance may be the latest cryptocurrency finance company experiencing some serious issues among the continuing market downturn.
Babel Finance formally announced Next Month a brief suspension of redemptions and withdrawals from the products, citing “unusual liquidity pressures.”
“Recently, the crypto market has witnessed major fluctuations, and a few institutions in the market have observed conductive risk occasions,” the statement on Babel Finance’s website reads.
The firm stated that it is in close communication with “all related parties” around the matter and it is doing its best to be able to best safeguard its customers.
Founded in 2018, Babel Finance is really a major cryptocurrency financial services provider, offering crypto lending, asset management and financing services to institutional investors. Their portfolio generated $8 billion in average monthly buying and selling volumes. At the begining of May 2022, Babel elevated $40 million inside a Series A funding round brought by the likes of Zoo Capital, Sequoia Capital China, Dragonfly Capital and Tiger Global Management.
By halting withdrawals, Babel Finance joins the growing listing of crypto lending firms experiencing major issues because of the market conditions. The crypto staking and lending platform Celsius grew to become among the first firms to signal the continuing crypto lending crisis, formally halting withdrawals on its platform on June 13.
This information is developing and will also be updated.