In less than a week after crypto platform Celsius suspended consumer withdrawals, another crypto lender made a similar move, as major cryptocurrencies crashed in recent weeks, bitcoin s trading down 70% from its all-time high.
Hong Kong-based crypto financial services provider Babel Finance has halted redemptions and withdrawals of all of its products, according to a notice issued Friday by the company.
“Recently, the crypto market has seen significant fluctuations and some institutions in the industry have experienced conductive risk events. Due to the current situation, Babel Finance faces unusual liquidity pressures,” the company wrote.
“We are in close communication with all related parties on the steps we are taking to best protect our customers,” he added.
Several crypto companies have recently shown signs of struggling. As the biggest crypto lender, Celsius has reportedly hired restructuring lawyers to advise on possible solutions to its growing financial woes, according to a Wall Street Journal report, after the company suspended withdrawals on Sunday.
Crypto hedge fund Three Arrows, one of the biggest players in the space, hired legal and financial advisors to help develop a solution for its investors and lenders, after suffering heavy losses, according to a separate Wall Street Journal article quoting the company’s co-founder.
Lily: Crypto crash: Celsius, potential Three Arrows contagion has investors worried. Here’s what to watch
is trading at around $20,634 on Friday, down 0.9% in the past 24 hours, according to data from CoinDesk. Ether ETHUSD,
is down 0.4% to around $1,083.