Hong Kong-based crypto lender Babel Finance has managed to ease some short-term liquidity pressures following a debt agreement reached with counterparties.
Babel Finance has reached «preliminary agreements on the repayment period» for some of its debt, according to a statement on its website, following an emergency assessment to understand the firm’s liquidity status.
«We have actively communicated with shareholders and potential investors, and will continue to communicate and obtain liquidity support,» the statement said. «Babel Finance will actively fulfill its legal responsibilities to customers and strive to avoid further transmission and diffusion of liquidity risks.»
The latest development follows Babel Finance’s decision to suspend withdrawals and redemption of crypto assets on Friday in the midst of ongoing market turmoil. The broader crypto market has plunged by more than two-thirds in the last seven months from a peak of around $2.9 trillion in November to around $900 billion, according to data from CoinMarketCap.
