The Hong-Kong based crypto lending firm, Babel Finance, has stated that it has ‘reached an agreement with counterparties on the repayment of some debts to ease short-term liquidity’.
The company said in the statement, “Given the current context of severe market volatility, Babel Finance’s management will continue to communicate closely with customers, counterparties, and other partners, and provide updates in a timely and transparent manner.”
Babel also announced on its website that it performed an emergency assessment of its business functions to ascertain the company’s liquidity status.
Moreover, off the point, the firm’s twitter account ‘@babelfinance’ was attacked at around 9:00 AM (Hong Kong time) this morning, causing the account to be abnormally suspended.
The decision comes after Babel had stopped withdrawals and redemption of crypto assets on Friday. As investors haven’t stopped dumping cryptos in a growing interest rate, crypto value continues to drop further in the past few weeks. This in turn, has made it difficult for crypto lending firms to redeem their client’s assets.
As per sources, the crypto lender is apparently also considering potential solutions like building up a new platform to take over some of the debt.
Ironically, last month, the firm had raised $40 million in a Series A funding round which was led by Sequoia Capital China, Zoo Capital, Dragonfly Capital and Tiger Global Management.
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