Hong Kong-based asset manager Babel Finance is the latest cryptocurrency lending firm experiencing some serious issues amid the ongoing market downturn.
Babel Finance officially announced Friday a temporary suspension of redemptions and withdrawals from its products, citing “unusual liquidity pressures.”
“Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events,” the statement on Babel Finance's website reads.
The firm said that it’s in close communication with “all related parties” on the matter and is doing its best to best protect its customers.
“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.
Founded in 2018, Babel Finance is a major cryptocurrency financial services provider, offering crypto lending, asset management and financing services to institutional investors. The company’s portfolio generated $8 billion in average monthly trading volumes. In early May 2022, Babel raised $40 million in a Series A funding round led by companies like Zoo Capital, Sequoia Capital China, Dragonfly Capital and Tiger Global Management.
Related: Celsius reportedly seeks advice from lawyers on restructuring
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.