👋 Do you want to work with us? CryptoSlate is hiring for a handful of positions!
As the crypto winter drags on, its effects spill over into different areas of the crypto ecosystem, forcing difficult decisions. Several crypto companies are facing liquidation risks, cutting their workforce and halting user activities on their platforms to stay afloat.
The latest in a myriad of stoppages in operation is Babel Finance, which sent a public notice on June 17, 2022 to its users.
The notice contained information that fluctuations in the crypto market have caused the company to “face unusual liquidity pressures.” The company further stated that it is in close communication to ensure the protection of its customers.
As a result, “refunds and withdrawals of Babel Finance products will be temporarily suspended,” the notice said. However, he assured that the resumption of the service would be notified separately without failing to say when.
@FatManTerra weighed in on the ad and stated that Babel is “currently facing nine-figure losses.”
A verified source has confirmed that Babel Finance, a large Chinese cryptocurrency management fund, is currently facing nine-figure losses: Babel clients and counterparties, please withdraw your capital for the time being if you can.
— FatMan (@FatManTerra) June 17, 2022
He tweeted that while Babel has not been liquidated yet, the idea is being considered.
The crypto finance provider raised $80 million in a new investment round in May, bringing its valuation to $2 billion. Jeneration Capital, Circle Ventures and 10T Holdings joined existing investors Dragonfly Capital and BAI Capital in the investment round.
Crypto Institutions Take Hard Hits
Several cryptocurrency companies have made public headlines as they struggle to protect themselves against the rapidly drying up valuation. Since the start of the first quarter of 2022, the entire crypto market has crashed, which has seen major cryptocurrencies plummet.
According to a recent report, rival crypto services provider Finblox also released a statement informing users of new restrictions on its platform, including a pause on rewards and a limit on daily withdrawals, due to its connections with Three Arrows Capital. .
Celsius, which had attracted the most attention, made a similar announcement on June 12 to pause withdrawals, trades, and transfers.
Likewise, Three Arrows Capital is the subject of insolvency speculation amid rumors of imminent liquidation.
Obtain a Edge in the Cryptomarket 👇
Become a member of CryptoSlate Edge and get access to our exclusive Discord community, plus exclusive content and analysis.
Join now for $19/month Explore all the benefits
This post Babel Finance suspends withdrawals due to “unusual liquidity pressures”
was published first on https://cryptoslate.com/babel-finance-suspends-withdrawals-due-to-unusual-liquidity-pressures/