Babel Finance Reaches Debt Agreement With Counterparties After Withdrawal Freeze
The company will continue to communicate with shareholders as it looks to obtain liquidity support.
Jun 20, 2022 at 1:02 p.m. UTCUpdated May 11, 2023 at 6:49 p.m. UTC
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Hong Kong-based crypto lender Babel Finance has reached preliminary agreements with counterparties on the repayment of some debts that led to the platform halting large withdrawals last week, according to an official update Monday morning on the company's website.
- On Friday, Babel imposed a $1,500 per month withdrawal limit, citing "unusual liquidity pressures." Now, following an "emergency assessment" of operations, the company said short-term liquidity pressures have "eased."
- "We have actively communicated with shareholders and potential investors, and will continue to communicate and obtain liquidity support," the statement continued.
- At the end of 2021, Babel Finance had an outstanding loan balance of over $3 billion, up from $2 billion the previous February.
- The company just last month raised $80 million in a Series B last month at a valuation of $2 billion.
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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.