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.’’
Babel Finance published a notice today on their website informing customers of their plans to protect them from market turmoil. It’s important to note that majority of the institutions in the crypto industry have been through conductive risk events.
The notice said:
‘’Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events. Babel Finance faces unusual liquidity pressures because of the current situation. We keep in touch with all parties involved regarding the actions we are taking to ensure our customers are protected. Babel Finance products withdrawals and redemptions will be temporarily suspended during this time. We will notify you separately about the return to normal service. We apologize sincerely for any inconvenience caused.’’
DeFi platforms are increasingly unable to withdraw funds
DeFi platforms appear to be causing withdrawals to stop with Celsius and other crypto markets. They may also be pausing swaps or internal transfers due the plunge in crypto markets.
Yesterday Finblox, a staking site, shared a tweet saying that withdrawals were now restricted to $1,500 per calendar month, down from $500 per day. This was due to their connection with Three Arrows Capital (3AC).
FINBLOX: IMPORTANT UPDATE pic.twitter.com/VjclRMMiSe
— Finblox (@finblox) June 16, 2022
Three Arrows Capital is now at the center insolvency speculations after the collapse of crypto prices. Today, the firm’s leveraged positions were liquidated by the three crypto exchanges namely FTX, BitMEX, and Deribit.