Babel Finance has become the latest crypto lending platform to suspend redemptions and withdrawals, the Hong Kong-based company said in a blog post Friday.
The firm stated it was “facing unusual liquidity pressures” amid a border crash in cryptocurrency prices, citing a lack of available assets readily on-hand as the basis of its decision to prevent customers from moving money out of their accounts.
“Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events,” said Babel Finance, in the announcement posted to its website.
It follows a similar move by crypto lending platform Celsius, which earlier this week announced that it would prevent customers from withdrawing or transferring their funds, as its positions in Lido Staked Ethereum (stETH) came under threat when stETH lost its peg to ETH. The ripple effects from stETH’s depegging continue to spread, with crypto hedge fund Three Arrows Capital (3AC) facing...
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