Four days after freezing withdrawals, cryptocurrency lender Babel Finance announced Monday (June 20) on its website that it had “reached preliminary agreements on the repayment of some debts,” which “eased some of the company’s short-term liquidity pressure.”
The company continued: “Babel Finance will actively fulfill its legal responsibilities to customers and strive to avoid further transmission and diffusion of liquidity risks.” The firm did not indicate when it would resume allowing withdrawals of funds.
In announcing the halting of withdrawals and redemptions, Babel wrote in a notice to customers: “We are in close communication with all related parties on the actions we are taking in order to best protect our customers. During this period, redemptions and withdrawals from Babel Finance products will be temporarily suspended, and resumption of normal service be notified separately. We apologize sincerely for any inconvenience caused.”
Similar news: Babel Finance Stops Withdrawals
Less than a week before Babel’s halting of withdrawals, fellow cryptocurrency lender Celsius stopped withdrawals. The lender attributed its decision to “extreme market conditions.”
More here: Collapse of Crypto Lending Platform Celsius Points to Bigger Problems
Celsius offered investors extremely high returns and the lent funds it raised to borrowers, who used their own cryptocurrency holdings as collateral.
Separately, Babel posted a notice on its website Tuesday (June 21), reporting that the company’s Twitter account — @babelfinance — had been temporarily suspended because it was under internet attack from unknown sources. The notice also listed the handles of several Twitter accounts that seem to have been disguised to look like official Babel Finance accounts.
Sign up here for daily updates on all of PYMNTS’ Crypto coverage.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More