Crypto lender Babel announces debt relief
Four days after withdrawals freeze, cryptocurrency lender Babel Finance announced Monday, June 20 on its website that it had “reached preliminary agreements on the repayment of certain debts”, which “relieved some of the short-term liquidity pressure on the company”.
The company continued, “Babel Finance will actively fulfill its legal responsibilities to its clients and strive to avoid further transmission and diffusion of liquidity risk. The company did not say when it would start allowing withdrawals of funds again.
In announcing the halt to withdrawals and redemptions, Babel wrote in a notice to clients: “We are in close communication with all related parties on the steps we are taking to best protect our clients. During this period, redemptions and withdrawals of Babel Finance products will be temporarily suspended and the resumption of normal service will be notified separately. We sincerely apologize for any inconvenience caused.
Related News: Babel Finance stops withdrawals
Less than a week before Babel stopped withdrawals, another cryptocurrency lender Celsius stopped withdrawals. The lender attributed its decision to “extreme market conditions”.
More here: Collapse of crypto lending platform Celsius points to bigger problems
Celsius offered investors extremely high returns and the loaned funds it raised to borrowers, who used their own cryptocurrency holdings as collateral.
Separately, Babel published a to remark on its website on Tuesday, June 21, reporting that the company’s Twitter account – @babelfinance – had been temporarily suspended as it was subject to an internet attack from unknown sources. The notice also listed the IDs of several Twitter accounts that appear to have been disguised to look like official Babel Finance accounts.