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Hong Kong-based asset manager Babel Finance is the latest cryptocurrency lender, which is currently experiencing some serious problems amid a market downturn.
On Friday, Babel Finance officially announced the suspension of conversions and withdrawals from its products, citing "unusual liquidity pressures."
Babel Finance's website states: "Recently, the cryptocurrency market has seen major fluctuations and a number of institutions in the industry have experienced risky events."
The company said it is in close contact with "all stakeholders" on the matter and is doing its best to protect its customers in the best possible way.
"Babel Finance is taking action to best protect the interests of our customers. We are in close contact with all stakeholders and will update the information in a timely manner," a company spokesperson said in a statement to Cointelegraph.
Founded in 2018, Babel Finance is a provider of financial services and cryptocurrency lenders, managing assets while simultaneously financing institutional investors. The company's portfolio generated an average monthly trading volume of $8 billion. In early May 2022, Babel raised $40 million in a Series A funding round led by companies such as Zoo Capital, Sequoia Capital China, Dragonfly Capital and Tiger Global Management.
By stopping withdrawals, Babel Finance joins a growing list of crypto lenders that are experiencing major problems due to current market conditions. Cryptocurrency lending and deposit platform Celsius became one of the first companies to signal the crisis, officially stopping withdrawals on its platform on Monday.
>> See also: Three Arrows Capital confirms heavy losses from LUNA's collapse.
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