Hong Kong based crypto lender Babel Finance has announced that it is temporarily suspending withdrawals and redemptions as well.
“Babel Finance is facing unusual liquidity pressures,” the announcement reads, before implying major ups and downs in the market and “conductive risk events” among institutional market participants.
Just last month, Babel secured $80 million in a Series B funding round, reaching a total valuation of $2 billion.
Recently, rival staking platform Finblox made a similar decision, when it announced that Finblox will enforce withdrawal limits over the Three Arrows Capital liquidation crisis. The withdrawal will be limited to $1,500 per month due to its connection with Three Arrows Capital.
Three Arrows Capital had failed to meet margin calls from a few crypto lenders in recent days. Citing “people familiar with the matter”, a report said these lenders included BlockFi, which was said to have liquidated “at least some” of Three Arrows Capital’s positions.
Also Read: BlockFi Involved in 3AC liquidation
The crypto market is at its lowest since December 2020, with Bitcoin (BTC) trading just above $20,000 while Ethereum (ETH) holds onto the psychological level of support at just $1,000.