Babel Finance, a Hong-Kong based asset manager, is experiencing some major issues amid the market meltdown.
On Friday, the company announced that they will be temporarily suspending redemptions and withdrawals from their products due to “unusual liquidity pressures.”
The company released a statement on Friday explaining its position, “Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events.”
The firm states that it’s working in its best efforts to keep its customers safe, and are keeping in close communication with “all related parties.”
“Babel Finance is taking action to best protect the interests of our clients. We are in close communication with all related parties and will share updates in a timely manner,” a spokesperson for the firm said in a statement to Cointelegraph.
Babel finance was founded in 2018 and has since become a well-known financial service provider in the crypto space, offering crypto lending, asset management, and financial services to institutional investors. The company’s portfolio generated around $8 billion in average monthly trading volume. In early 2022, the company raised $40 million in a Series A funding round led by companies like Sequoia, Capital China, Tiger Global Management, and Zoo Capital.
By halting withdrawals, Babel Finance joins the growing list of crypto lending firms experiencing major issues due to the current market conditions. Crypto staking and lending platform Celsius became one of the first firms to signal the ongoing crypto lending crisis, officially halting withdrawals on its platform on Monday.
Babel joins the list of crypto lending firms taking drastic measures to retain their company’s portfolios amid rocky market conditions by halting withdrawals. Earlier this Month, Celsius led this trend by announcing they would be stopping withdrawals from occurring on their platform.