Why is Babel finance suspending withdrawals?

Hong Kong-based crypto lender Babel Finance has suspended withdrawals and redemptions, according to an announcement on the company's website. "Babel Finance is facing unusual liquidity pressures," the statement reads, before alluding to major fluctuations in the market and "conductive risk events" among institutional market participants.

Is Babel finance facing unusual liquidity pressures?

"Babel Finance is facing unusual liquidity pressures," the statement reads, before alluding to major fluctuations in the market and "conductive risk events" among institutional market participants. Last month, Babel raised $80 million in a Series B round with a valuation of $2 billion.

What is liquidity shortfall?

Liquidity Shortfall means that the sum of (i) the Company ’s consolidated cash and cash equivalents plus (ii) unborrowed capacity under the Credit Agreement is less than and is reasonably projected by either the Company or the Purchaser to remain below $50 million for the ensuing three consecutive months.

How many customers does Babel finance have?

Babel Finance has around 500 customers and serves a “select clientele,” according to its May press release. Since its Series A round of funding in May of 2021, the company has grown from 50 people to over 170 employees and opened a new office in Singapore.