Crypto agitation spreads as the Hong Kong based lender Babel puts a full stop on withdrawals.
Babel is one of the biggest lenders in Crypto and it works as a bridge between Asia and the west with business focused on Bitcoin, Ether and Stablecoin.
However, Babel became the second digital asset lender this week to freeze the withdrawals by claiming that it is facing unusual liquidity pressure during recent market decline.
The Asia-based lender and asset manager said in the notice that, ‘The crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events’.
Additionally, the company’s spokesperson told Bloomberg that the team has faced “some pressure” and “are working on it.”
However, Celcius network paused withdrawals, swaps and transfers in an attempt to stop the digital-asset equivalent of a bank run recently.
Moreover, even Three Arrows Capital crypto fund shared a tweet about financial concerns at the firm this week.
Recently, the fall in Crypto market have tracked all crypto value below $1 trillion which is considered as a sharp drop in from $3 trillion late last year.
Meanwhile, Babel reached a $2 billion valuation in a funding round with investors including Jeneration Capital and 10T holdings.
However, Sequoia Capital and Tiger Global are its current investors.
Additionally, Babel has many clients including many bitcoin and Ethereum miners but it wants to get more institutions since China’s industry ban.
