Babel Finance, a cryptocurrency lender, has halted operations because to the market collapse.
With Bitcoin trading just above $20,000 and Ethereum on the cusp of a psychological support level near $1,000, the cryptocurrency market capitalization is at its lowest level since December 2020.
Negative sentiment weighed on the market, which was compounded by the fact that three crypto lending platforms, Celsius, Finblox, and crypto hedge fund Three Arrows Capital, stopped or curtailed financial transactions and withdrawals at the start of June.
Babel Finance, a Hong Kong-based crypto lending company, has ceased operations and barred withdrawals from client accounts in light of the negative news.
Recently, the bitcoin market has been roiled, and certain institutions in the industry have encountered conductive risk incidents.
Babel Finance is experiencing a severe liquidity shortage. We maintain regular communication with all parties and coordinate efforts to ensure that client money are protected to the greatest extent possible.
“Redeemations and withdrawals from Babel Finance products will be temporarily suspended for a period of time, and the reinstatement of normal service will be communicated separately,” according to the company’s official notification to consumers on its website.
The news comes just a month after the company completed a fundraising round that increased its market value to $2 billion. Due to uncertainty with Three Arrows Capital, Finblox, a rival platform to Babel Finance, made a similar decision on Thursday, June 16, limiting financial transactions and withdrawals to $1,500 per month.
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