Babel Finance Working To Ease ‘Unusual Liquidity Pressures’

The crypto financial services provider suspended redemptions and withdrawals from its products on Friday

article-image

Del Wang, co-founder and CEO of Babel Finance | Source: Babel Finance

share

key takeaways

  • Babel Finance pledged to continue to obtain liquidity support in an effort to protect investors
  • The company raised $80 million at a $2 billion valuation last month

Babel Finance has reached preliminary agreements with counterparties and customers dealing with the repayment period of some debts to ease the company’s liquidity pressure in the short term.

The update, shared on the crypto lender’s website on Monday, follows Babel Finance — as well as other crypto companies such as Celsius and Three Arrows Capital — disclosing liquidity issues in recent days as crypto prices have plunged.

The price of bitcoin was at $20,640 at 10:30 am ET on Monday morning, according to data compiled by Blockworks — up about 6% in the past 24 hours but down roughly 23% from a week ago. 

Babel Finance revealed on Friday that redemptions and withdrawals from its products would be temporarily suspended amid “unusual liquidity pressures.”

The company noted in its Monday statement that it did an emergency assessment of its business operations and looks to fulfill its legal responsibilities to customers by continuing “to avoid further transmission and diffusion of liquidity risks.” 

“We have actively communicated with shareholders and potential investors, and will continue to communicate and obtain liquidity support,” according to the statement.

“Given the current context of severe market volatility, Babel Finance’s management will continue to communicate closely with customers, counterparties, and other partners, and provide updates in a timely and transparent manner.”

Babel Finance did not immediately return a request for further comment.

Founded in 2018, the crypto financial services provider’s main businesses are lending and trading — it focuses on bitcoin, ether and stablecoins. 

Babel Finance raised $80 million at a $2 billion valuation last month. Main investors in the round included Jeneration Capital and 10T Holdings, as well as existing shareholders Dragonfly Capital and BAI Capital.

The firm, which currently had about 500 clients, raised $40 million in its series A round in May 2021.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million