February 27, 2024

Crypto Lending Platform Babel Finance Suspends Withdrawals

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Crypto lending platform Babel Finance suspends withdrawals

Cryptocurrency lender Babel Finance responded to the market downturn and suspended financial transactions.

As of June 17, capitalizationThe cryptocurrency market is at its lowest level since December 2020, with Bitcoin trading just above $20,000 and Ethereum hovering on the edge of psychological support around $1,000. The market suffered from negative sentiment, aggravated by the fact that three crypto lending platforms Celsius, Finblox and crypto hedge fund Three Arrows Capital froze or limited financial transactions and withdrawals in early June.

Against this negative background, the Hong Kong crypto lending operator Babel Finance from Hong Kong suspended its operations and prohibited the withdrawal of funds from client accounts.

“Recently in the cryptocurrency marketThere have been significant disruptions and some institutions in the industry have experienced conduct risk events. Babel Finance is facing an extraordinary liquidity crunch. We are in close contact with all stakeholders and coordinate actions to best protect client funds. For a period, repayments and withdrawals from Babel Finance products will be temporarily suspended and the resumption of normal services will be notified separately,” reads an official notice to customers on the company’s website.

The announcement comes just a month after the completion of a funding round, which increased the company's market valuation to $2 billion.

On Thursday, June 16, competing with BabelFinance platform Finblox made a similar decision, limiting financial transactions and withdrawals to $1,500 per month due to uncertainty with Three Arrows Capital