Babel Finance, the Hong Kong-based asset manager, has joined the growing list of firms that indicate the mounting crisis in the crypto niche amid the string bear market.
Babel Finance Suspends Withdrawals, Signals Bigger Trouble
The Hong Kong-based asset manager Babel Finance is the new entrant into the list of lending platforms showing weakness in the current market meltdown. On Friday, the company announced a temporary suspension of withdrawals and redemptions from its products because of the liquidity pressures.
“Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events,” read a statement on Babel Finance’s website.
The company indicated that it is working extra hard to protect its customers’ interests. “Babel Finance is taking action to best protect the interests of our clients. We are in close communication with all related parties and will share updates in a timely manner,” a spokesperson for the firm said in a statement to newsrooms.
Started in 2018, Babel Finance is a major crypto financial services provider, offering services such as crypto lending and asset management. Since its inception, the company has generated up to USD18 billion in average monthly trading volumes. By early May 2022, Babel raised USD40 million in a Series A funding round, which was led by Dragonfly Capital and Tiger Global Management, among other liquidity providers.
By cancelling all withdrawals, Babel Finance is now part of the growing list of crypto lending firms that are experiencing challenges because of market conditions. Celsius, another crypto lending platform, officially halted withdrawals on 13th June 2022.