Babel Finance Latest Crypto Services Provider To Halt Customer Withdrawals
Contagion continues within the crypto industry following the continued decline of bitcoin. Babel Finance, a crypto-services firm based in Asia, this morning announced that it has halted withdrawals as a result of the trouble in the markets.
Posting a notice to its users on its website this morning, the company stated that it is “facing unusual liquidity pressures,” and as a result withdrawals and redemptions from the service provider “will be temporarily suspended.” No timeline for resumption of withdrawals was provided, with the firm instead stating that such information would be provided at a later date.
In an announcement made last month related to the closing of a US$80 million financing at a $2.0 billion valuation, the firm stated that it serves about 500 customers, with its business limited to bitcoin, ethereum, and stablecoins. Trading volume is said to be $800 million on average each month for derivatives, with an outstanding loan balance of over $3.0 billion as of the end of 2021.
The firm primarily provides crypto lending and trading for institutional clients.
The halting of withdrawals follows the ongoing implosion of Three Arrows Capital, or 3AC, a crypto-focused hedge fund that is in the process of being liquidated by lenders.
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