Hong Kong-based Babel Finance is the latest crypto firm to face market headwinds after it suspended withdrawals and redemptions.
Babel Finance temporarily suspended withdrawals and redemptions of crypto assets due to liquidity pressures, according to a statement.
«Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events. Due to the current situation, Babel Finance is facing unusual liquidity pressures,» the firm said.
Crypto Troubles
After peaking at around $2.9 trillion in November last year, crypto markets have tumbled more than two-thirds to around $900 billion, according to data from CoinMarketCap. In addition to a challenging macro environment, cryptocurrencies have faced other pressures including the collapse of stablecoin TerraUSD and a recent withdrawal freeze at crypto lender Celsius Network.
Founded in 2018, Babel today has 500 clients alongside $3 billion of loan balances with a focus on bitcoin, ethereum and stablecoins. It raised $80 million in the most recent funding round last month, valuing the firm at $2 billion.
