Babel Finance, a Hong Kong-based crypto firm that recently raised $80 million at a $2 billion valuation, has halted all withdrawals and redemptions according to a company statement.
Posted on the website, Babel Finance explains:
“Recently, the market has fluctuated violently, and some institutions in the industry have experienced conductive risk events. Affected by this, Babel Finance is facing greater liquidity pressure. In order to avoid further deterioration of the situation and protect customers from losses to the greatest extent, the company is closely communicating solutions with all related parties. During this period, the redemption and withdrawal functions of Babel Finance products will be suspended, and the recovery time will be notified separately. The company apologises for the inconvenience caused to customers.”
Little additional information is currently available.
Babel Finance joins Celsius Network, another large crypto lender, that halted all withdrawals this past weekend. As crypto valuations have tanked, and Bitcoin nears $20,000, many firms have moved to liquidate positions and unwind leverage causing a crypto bank run.
Babel Finance is an institutional-focused platform and does not provide services to US investors.
Late last month, Babel Finance announced the new funding round sharing that it only serves 500 customers and is limited to Bitcoin and Ethereum as well as certain stablecoins. At the end of 2021, Babel reported a loan balance of more than $3 billion.
Babel Finance describes itself as a leader in the institutional-grade crypto financial services market, providing institutional investors and ultra-high net worth accredited investors with professional services and customized solutions in crypto-asset lending, and trading.
At the time of the funding, Wang Li, co-founder and CEO of Babel Finance, said they pay more attention to the long-term development of the industry, and hope to lead institutional-level financial services and financial innovation.
“Not only allows us to overcome many uncertainties in the early stage of the industry, including regulatory and market uncertainties, but also protects our customers to the greatest extent possible. The cryptocurrency industry will become more and more institutionalized in the future, and Babel Finance’s mission is to explore and Participate in the establishment of the financial rules and order of the industry foundation, make more contributions to the long-term healthy development of the industry, and grow together with it.”