Another crypto credit platform is a withdrawal freeze as the industry continues to decline

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A trader working on the NYSE New York Stock Exchange in New York, USA, on March 9, 2022.

Michael Nagle / Xinhua via Getty

  • Crypto Babel lenders are freezing withdrawals for users due to “unusual liquidity pressures.”
  • This is the second major platform to perform this week as the crypto market faces huge sales.
  • Celsius before stopping allows customers to cancel ownership on Sunday.
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Other major crypto credit platforms have stopped allowing people to take ownership.

Babel Finance, which is based in Hong Kong and has a 500 customer base, said Friday that the withdrawal of the service would be “temporarily delayed” because the cryptocurrency faces brutal and widespread sales.

“The crypto market has experienced major fluctuations, and some institutions in the industry have experienced conductive risk events,” Babel said on its website. “Because of the current situation, Babel Finance is facing unusual liquidity pressures.”

Babel did not immediately respond to an Insider request for comment.

The company was finally valued at $ 2 billion in May, Reuters reported, and only allows trading and borrowing of bitcoin, ethereum, and stablecoins.

This is also not the only lending platform to stop withdrawals due to rising liquidity pressures amid a worsening market.

The Celsius network said Sunday it did the same thing for its 1.7 million subscribers, citing “extreme market conditions.”

Celsius users told Insider this week that they are worried about the ownership they are currently trapped on the platform. One user said he had $ 105,000 crypto stuck in the app. Others say he has lost income for two years.

The price of bitcoin, which is still the largest and most popular cryptocurrency, has dropped 70% from its November 2021 peak. The slump has dragged its entire market value below $ 1 trillion for the first time since February 2021.

The defeat also affected hedge funds like 10 -year, crypto -focused Three Arrows Capital, also known as 3AC. The company has hired “legal and financial advisers,” the Wall Street Journal reported, after large losses caused by major investments in stablecoin that went downhill.

3AC also currently faces a $ 400 million liquidation, according to The Block.

Founders Zhu Su and Kyle Davies, meanwhile, have been “haunting” business partners when they grapple with concerns about insolvency, Vice reported.

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