A Hong Kong-based crypto financial service provider is freezing withdrawals within weeks of closing a multi-million-dollar funding round.
Babel Finance, which primarily works with institutional investors, and high-net-worth individuals, announced the firm is temporarily suspending customer withdrawals due to crypto market volatility and liquidity issues.
“Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events. Due to the current situation, Babel Finance is facing unusual liquidity pressures.
We are in close communication with all related parties on the actions we are taking in order to best protect our customers.
During this period, redemptions and withdrawals from Babel Finance products will be temporarily suspended, and resumption of normal service be notified separately. We apologize sincerely for any inconvenience caused.”
The announcement comes less than a month after the firm raised $80 million, which pushed the company’s value to $2 billion. No specific date was given as to when withdrawals would resume.
Earlier this month, crypto lending protocol Celsius Network (CEL) also shut down consumer withdrawals, causing its native crypto asset CEL to plummet nearly 99% from its all-time high and prompting five different US states to probe the platform.
Celsius also attributed extreme market volatility for the withdrawal freeze. As stated by the firm,
“Celsius Network is pausing all withdrawals, swap, and transfers between accounts. Acting in the interest of our community is our top priority. Our operations continue and we will continue to share information with the community.”