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Is Babel finance facing unusual liquidity pressures?
Meanwhile, in Hong Kong, another crypto lender named Babel Finance has announced its own freeze on withdrawals and redemptions, claiming it’s “facing unusual liquidity pressures.” As recently as May 25th, it had closed a round of funding valuing the company at $2 billion. A report by Decrypt collects claims that Babel misused client funds.Why did Babel finance halt crypto withdrawals this month?
The market has been hit by negative sentiment exacerbated by crypto lender Celsius halting withdrawals earlier this month. “Babel Finance is taking action to best protect the interests of our clients," a company spokesperson told CoinDesk. "We are in close communication with all related parties and will share updates in a timely manner."How much did Babel finance raise last month?
Last month, Babel raised $80 million in a Series B round with a valuation of $2 billion. At the end of 2021, Babel Finance had an outstanding loan balance of over $3 billion, up from $2 billion the previous February. It averaged $800 million in monthly derivatives trading volume and had structured and traded over $20 billion in options products.Are Celsius Network and Babel finance floundering?
Celsius Network, Babel Finance, and Three Arrows Capital are floundering, and it’s not yet clear how extensive the damage may be. This week started with a Sunday night announcement from the Celsius Network, a gigantic crypto lending company, that it would pause withdrawals and transfers.