Due to the ongoing crypto market meltdown, Babel Finance, an Asian-based crypto lender firm, has suspended all their products’ redemptions and withdrawals from clients, noting that their firm is facing ‘’Unusual liquidity pressure.’’
Today, June 17, Babel Finance wrote a notice on their official website to inform their customers of the decisions they are taking to protect them as the markets continue to trade sideways. It’s important to note that majority of the institutions in the crypto industry have been through conductive risk events.
The notice read:
‘’Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events. Due to the current situation, Babel Finance is facing unusual liquidity pressures. We are in close communication with all related parties on the actions we are taking in order to best protect our customers. During this period, redemptions and withdrawals from Babel Finance products will be temporarily suspended, and resumption of normal service be notified separately. We apologize sincerely for any inconvenience caused.’’
DeFi platforms increasingly pausing withdrawals
With the plunging crypto markets, DeFi platforms seem to be resulting in pausing withdrawals with others like Celsius going as far as pausing swaps and internal transfers.
Yesterday, Finblox, a staking platform, also shared a tweet stating that they have restricted withdrawals from their platform to $1,500 per month from a limit of $500 per day as a result of its connection with the Three Arrows Capital (3AC).
IMPORTANT UPDATE FROM FINBLOX! pic.twitter.com/VjclRMMiSe
— Finblox (@finblox) June 16, 2022
Three Arrows Capital has found itself at the center of insolvency speculations following the deteriorating crypto prices. Today, the firm’s leveraged positions were liquidated by the three crypto exchanges namely FTX, BitMEX, and Deribit.
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