Reprieve for Babel; Celsius Goes Offline

Reprieve for Babel; Celsius Goes Offline
Nikko Macaspac, Unsplash
21 June 2022

Singapore-based crypto financial services provider Babel Finance, which was staring down potential insolvency, said it has carried out an “emergency assessment of the company’s business operations” to understand the company’s liquidity status, and has “communicated with major counterparties and relevant customers, and reached preliminary agreements on the repayment period of some debts.”

This has eased the company’s short-term liquidity pressures, and the company is currently in discussions to obtain further liquidity support, Babel said in an announcement dated 20 June.

“Babel Finance will actively fulfill its legal responsibilities to customers and strive to avoid further transmission and diffusion of liquidity risks. We thank our customers for their understanding and support during this period, and hope to obtain further support from our partners,” the announcement said.

Read more: Singapore Based Crypto Lender Babel Finance on Verge of Collapse

Babel, which was valued at US$2 billion in a funding round last month, in which it raised US$80 million, temporarily suspended withdrawals and redemptions of crypto assets on Saturday, amid a liquidity crisis at the company. The platform’s investors include names like NGC Ventures, Dragonfly Capital, BAI Capital, Sequoia Ventures, Tiger Global, Jeneration Capital, 10T Holdings and more.

The company did not provide any indication of when withdrawals would resume.

And while Dubai-based crypto hedge fund Three Arrows Capital (3AC) has yet to provide any update on its potential insolvency after liquidations, Celsius said In an update on Monday that stabilizing its liquidity and operations “will take time” and that it is pausing its Twitter Spaces and AMAs to “focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community.”

Read More: Below 0° Celsius: When Your Deposit Gets Frozen

The crypto staking platform, which has some US$12 billion in assets under management as of May 2022, according to the company, paused customer withdrawals last week as the crypto market took a bearish turn.

Blockhead Team
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