Hong-Kong based crypto lender Babel Finance has halted redemptions and withdrawals on Babel products, naming “unusual liquidity pressures” as its justification for the pause.
Babel, recently valued at US$2 billion in its $80 million Series B funding round, has named limitations in on-hand asset availability as its main motivation for pausing withdrawals. Its action comes as crypto prices have dipped across the industry.
Babel Finance is taking action to best protect the interests of our clients … we are in close communication with all related parties and will share updates in a timely manner.
Babel Finance notice
With the crypto market at its lowest since December 2020, major fluctuations are putting pressure on all market participants. Many other lending platforms, including Celsius, Inverse Finance and Finblox, have also been halting or restricting their services.
While Babel cannot say how long its products will be suspended, it has “sincerely apologised” and stated its intentions to operate in the “best interests” of its clients.
Celsius Also Pauses Withdrawals
Celsius, another crypto lender, received a purchase proposal from competitor Nexo last week. This followed moves by Celsius towards insolvency, with the company blaming “extreme market conditions” for its decision to pause customer withdrawals.