Cryptocurrency lender Babel Finance reacted to the market downturn by suspending financial transactions.
As of June 17, the capitalization of the cryptocurrency market located at its lowest level since December 2020, with bitcoin trading just above $20,000 and ether on the verge of a psychological support level near $1,000. The market was hit by negative sentiment exacerbated by the fact that three crypto lending platforms Celsius, Finblox and crypto hedge fund Three Arrows Capital froze or limited financial transactions and withdrawals at the beginning of June.
Against this negative background, the Hong Kong-based crypto lending operator Babel Finance from Hong Kong suspended operations and prohibited the withdrawal of funds from client accounts.
“Recently, there have been major turmoil in the cryptocurrency market, and some institutions in the industry have experienced conductive risk events. Babel Finance is facing an extraordinary lack of liquidity. We are in close contact with all stakeholders and coordinate actions to best protect client funds. For some period, redemptions and withdrawals from Babel Finance products will be temporarily suspended, and the resumption of normal service will be announced separately, ”the official notice to customers on the company’s website reads.
The announcement came just a month after the completion of a funding round that raised the company’s market valuation to $2 billion.
On Thursday, June 16, Finblox, a rival platform to Babel Finance, made a similar decision, limiting financial transactions and withdrawals to $1,500 per month due to uncertainty with Three Arrows Capital.
Source: Bits
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