Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Babel Finance, the Hong Kong crypto lender that suspended withdrawals last month amid "liquidity pressures," reportedly lost $280 million in proprietary trades with customer funds, The Block reported, citing a restructuring proposal deck.

The firm lost around 8,000 bitcoin (BTC) and 56,000 ether (ETH) in June in forced liquidations as the crypto market plunged to an 18-month low, sending bitcoin below $20,000, the deck shows, according to The Block. The trades were unhedged in what was described as a "volatile trading week."

Babel Finance was one of several crypto companies struck by market contagion in June. Its decision to halt withdrawals followed that of Celsius Network and Voyager Digital, with hedge fund Three Arrows Capital also receiving margin calls from several lenders.

Babel is aiming to convert hundreds of millions of dollars of debt into equity as it looks to obtain a revolving credit facility to raise funds, according to the deck, The Block said.

Earlier this month Babel looked to hire restructuring specialist Houlihan Lokey.

The lender also said it reached preliminary debt agreements with counterparties in June.

Babel Finance did not immediately respond to CoinDesk's request for a comment.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.