Asia based crypto financial service provider Babel Finance announced on its website earlier today that withdrawals and some other operations will be stopped temporarily. The company cited “unusual liquidity pressure” as what led it to make the decision.
More crypto crises erupt during this seemingly unending bear run
It doesn’t seem like the reverberating meltdown of some crypto financial organisations will end soon as we now wake up to news of one crisis or the other happening in the crypto space. The freshest one being Three arrows capital scandal.
There might be another crisis on the way as another company which provides lending and saving services Babel Finance has just halted Withdrawals “temporarily”.
According to the statement on their website, the decision was taken due to major market volatility, the same reason Celsius network had to pause withdrawals. As a matter of fact, this volatility has seen industry giants fall like a pack of cards and the question “who is next?” is on everyone’s lips.
On resolving the issue, the company stated,
We are in close communication with all related parties on the actions we are taking in order to best protect our customers.
Babel Finance CEO said the Terra meltdown has no impact on the company
Barely a month ago, after the Terra-LUNA crisis, co-founder and CEO of Babel Finance Del Wang had asserted that there was no link between Babel and Terra so there is no way the former could affect the latter.
The recent collapse of Luna and stablecoin UST had “no impact” on Babel’s business because the firm “has no exposure” to the coins and limits its business to bitcoins, ethers and certain stablecoins.
The company claimed that it had over $3 billion in outstanding loan balance and an average monthly trading volume of $800 million in derivatives at the end of 2021. Babel finance structured and traded more than $20 billion in options products.
Meanwhile, rival crypto financial service provider Finblox, on Thursday, made a similar announcement, limiting withdrawals to $1,500 monthly due to its link with Three Arrows Capital.