Hong Kong-based Babel Finance announced on Monday it has reached “preliminary agreements” on debt repayments to counterparties following a redemption and withdrawal freeze instituted last Friday.
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Fast facts
- A preliminary restructuring of the debt repayment period has “eased” the company’s short-term liquidity pressure, Babel Finance said in a statement.
- The crypto startup cited “unusual liquidity pressures” and the need for an “emergency assessment” of operations in its Friday announcement to freeze withdrawals.
- Amid recent market turmoil, crypto lending platform Celsius Network and Finblox halted or placed limits on withdrawals while crypto hedge fund Three Arrows Capital (3AC) is reportedly at risk of insolvency.
- Babel Finance announced a US$80 million Series B funding round in May to raise its valuation to US$2 billion, a year after a US$40 million Series A.
- At the end of 2021, Babel claimed that it had an outstanding loan balance of over US$3 billion and had an average monthly derivatives trading volume of US$800 million.
See related article: Client accuses Bitcoin, Ethereum backer Three Arrows Capital of misappropriating funds
