The cryptocurrency circle is in a cold winter. Following the suspension of user withdrawals and transfers by lending platform Celsius, another lending and trading platform, Hong Kong-based Babel Finance (PayPal Finance), also suspended all account withdrawals and redemptions on June 17. Returning assets means that the company is facing abnormal liquidity pressure.
Babel Finance stated to customers in its website announcement that there have been major fluctuations in the cryptocurrency market recently, and some institutions in the industry have experienced transmission risk events. In view of the current situation, Babel Finance is facing abnormal liquidity pressure.
"We are in close contact with relevant parties on the actions we are taking to best protect our customers. During this period, redemptions and withdrawals of Babel Finance products will be suspended until further notice to resume normal services," the announcement said. "The company apologised for the inconvenience.
Babel Finance published an announcement on its website on June 17, 2022, informing customers to suspend withdrawal and redemption services (website screenshot)
Babel Finance was founded in 2018, and its CEO and co-founder is Del Wang. According to US media, the company's business is the lending and trading of Bitcoin (Bitcoin), Ethereum (Ethereum) and stablecoins, with about 500 customers, large Some are institutional clients.
The company only announced at the end of May that it had raised $80 million in a Series B round that valued the company at $2 billion.
Cryptocurrency: Babel Finance was founded in 2018, with Del Wang as CEO and co-founder (Linkedin)
The cryptocurrency industry has seen a slump recently. The prices of bitcoin, ether and other currencies have fallen sharply, and even the "return to zero" incident of Luna and UST has affected many cryptocurrency technology companies. Celsius, a well-known lending and interest collection platform, had previously On the 12th, it announced the suspension of all customer withdrawals and transfers, including reasons for "stabilizing liquidity".
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