Thao Lam La · · 1 min readHK crypto lender reaches debt deals to ease liquidity pressure
Babel Finance, a Hong Kong-based crypto lending platform, has reached preliminary agreements with counterparties on the repayment of some debts, which previously caused the firm to suspend withdrawals.
Photo credit: Babel Finance
Babel said the agreements have eased the company’s short-term liquidity pressures, though it continues to seek support from shareholders and potential investors.
Founded in 2018 by Flex Yang and Del Wang, Babel’s major businesses lie in crypto lending and trading. Its primary targets are institutional investors and ultra-high-net-worth accredited investors.
Last month, the platform raised US$80 million in a series B round, pushing its valuation to US$2 billion. By the end of 2021, it had a loan balance sheet of over US$3 billion.
Babel’s struggle exemplifies the current crypto market slump. Last week, rival lending firm Celsius froze all transactions, citing “extreme” market conditions as the reason. Meanwhile, crypto hedge fund Three Arrows Capital reportedly faced insolvency as it scrambled to repay lenders. And Finblox, a crypto yield generation platform, announced it would cap withdrawal limits at US$500 per day and pause reward distribution.
See also: First Luna, now Celsius. What’s behind the latest crypto crisis?
Editing by Miguel Cordon and Joy Tirkey
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