Babel Finance Suspends Withdrawals As Cryptocurrency Markets Slump

Bitcoin (BTC) is barely above $20,000, while Ether (ETH) is holding onto its psychological level at $1,000. Rising geopolitical tensions are being blamed for the slump in the markets, try for free. Babel Finance has suspended withdrawals despite this slump, citing "unusual liquidity pressure."

Babel Finance Suspends Withdrawals As Cryptocurrency Markets Slump
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Bitcoin (BTC) trading barely above $20,000

Hong Kong-based cryptocurrency lending platform Babel Finance has temporarily suspended withdrawals and redemptions after a recent hunch in the digital foreign money market. Bitcoin has fallen by more than 50% from a record high in November. The Hong Kong-based company cited major market fluctuations and conductive risk events for the suspension. But is the move truly indicative of a crisis? The Hong Kong-based firm did not respond to an Insider query seeking comment.

The firm Babel Finance has suspended withdrawals and redemptions from its Celsius platform, citing unusual liquidity pressures. The company cited "conductive risks events" among institutional market participants and major market fluctuations. 

The firm reported an outstanding loan balance of over $3 billion at the end of 2021, with more than $800 million in derivatives trading volume per month. The announcement comes as the cryptocurrency market continues to plummet. Several institutions have experienced similar conductive risk events.

Ether (ETH) holding onto a psychological level at $1,000

Babel Finance has temporarily suspended redemptions and withdrawals as the cryptocurrency markets continue to slide. The Hong Kong-based crypto lending platform recently closed an $80 million Series B round at a $2 billion valuation. The company limits its business to Bitcoin, Ether, and stablecoins. It currently serves 500 customers. In the same vein, Binance has suspended Bitcoin withdrawals and redemptions.

Among the crypto lending companies, Hong Kong-based Babel Finance has temporarily suspended its customers' withdrawals and redemptions. This is because of unusual liquidity pressures and conductive risk events. 

It has posted a notice on its official website to alert clients of its decision. Regardless, Babel Finance is doing everything it can to protect its customers. They are currently in close communication with all relevant parties, and they apologize for any inconvenience this may cause.

Rising inflation and geopolitical tension blamed

Cryptocurrency lender Babel Finance has suspended withdrawals and redemptions, scrambling to pay its customers after a recent hunch in the digital foreign money market.

 As Bitcoin's value has plummeted more than fifty percent in the past year, the company is facing unusual liquidity pressures. Despite the difficulties that it has encountered, the company has maintained a positive attitude and is working with regulators to ensure that the market does not collapse completely.

In a statement, Babel Finance explained that it was experiencing conductive risk events, including a drop in trading volumes. The decision to suspend withdrawals is indicative of a broader trend among crypto lending institutions, as the market has recently experienced massive fluctuations. The company is working closely with all involved parties to protect its customers. But it is still not certain if it will be able to resume normal business operations soon.

Babel Finance suspends withdrawals due to "unusual liquidity pressure."

It is now prohibiting customer withdrawals and refunds following a recent shortage of funds. The company said it is in contact with all related parties to safeguard its customers. Although withdrawals and refunds have been temporarily suspended, the company will return to its normal services individually. This news will likely have a lasting impact on the market. This is the latest news surrounding cryptocurrency lending platforms.

As cryptocurrency markets continue to experience major fluctuations and conductive risk events, the Hong Kong-based asset manager Babel Finance has had to suspend withdrawals and refunds. Despite the sudden suspension of withdrawals, Babel has maintained that it is in contact with all its stakeholders and doing everything possible to safeguard its customers. The company is still evaluating the issue and is continuing to monitor its progress.

Final Words

Babel Finance has suspended withdrawals as cryptocurrency markets slump. As investors continue to withdraw their funds amid a volatile market, companies must take precautions to ensure customer safety. For example, you can trade through bitcoin trading software. If you're considering investing in cryptocurrencies, be sure to do your research first and consult with a financial advisor.