Hong Kong-based crypto lender Babel Finance has suspended withdrawals and redemptions, according to an announcement on the company's website.

"Babel Finance is facing unusual liquidity pressures," the statement reads, before alluding to major fluctuations in the market and "conductive risk events" among institutional market participants.
Last month, Babel raised $80 million in a Series B round with a valuation of $2 billion.
At the end of 2021, Babel Finance had an outstanding loan balance of over $3 billion, up from $2 billion the previous February. It averaged $800 million in monthly derivatives trading volume and had structured and traded over $20 billion in options products.
On Thursday, rival staking platform Finblox made a similar decision, restricting withdrawals to $1,500 per month due to its connection with Three Arrows Capital.
Three Arrows Capital has found itself at the center of insolvency speculation, with several leading exchanges liquidating the fund's positions, according to a report by The Block.
The cryptocurrency market is at its lowest point since December 2020, with bitcoin (BTC) trading narrowly above $20,000 while ether (ETH) holds onto the psychological level of support at $1,000. The market has been hit by negative sentiment exacerbated by crypto lender Celsius halting withdrawals earlier this month.
“Babel Finance is taking action to best protect the interests of our clients," a company spokesperson told CoinDesk. "We are in close communication with all related parties and will share updates in a timely manner."

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UPDATE (June 17, 11:51 UTC): Added Babel's outstanding loan balance at end of 2021.

UPDATE (June 17, 12:49 UTC): Added Babel's statement.

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Babel Finance Suspends Withdrawals, Citing 'Unusual Liquidity Pressures'

Babel Finance has responded to a market downturn by temporarily freezing withdrawals and redemptions.

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