Daily Crypto News

Babel Finance to Repay ‘Some Debts’ and ‘Ease Its Short-term Liquidity Pressure’

Source: Adobe/tiero


Crypto-financial services provider Babel Finance claims to have reached certain “preliminary agreements” with “major” and “relevant” players on the repayment period of “some debts” – easing its short-term liquidity pressure.

Per today’s notice by the company,

“We have communicated with major counterparties and relevant customers, and reached preliminary agreements on the repayment period of some debts, which has eased the company’s short-term liquidity pressure.”

As for the other steps the Babel Finance management has taken to “alleviate the company’s liquidity situation,” the notice states that:

  • the company has performed an emergency assessment of its business operations to understand its liquidity status;
  • it communicated with shareholders and potential investors, and says it will “continue to communicate and obtain liquidity support.”

The firm concluded by saying that,

Babel Finance will actively fulfill its legal responsibilities to customers and strive to avoid further transmission and diffusion of liquidity risks.

As reported, the company announced last Friday that it was “facing unusual liquidity pressures” given the situation in the crypto markets – and that it is “temporarily” suspending redemptions and withdrawals.

This is happening after the massive Terra crash in May and at a time when major crypto lender Celsius continues to face issues stemming from the major trouble it got into last week — both of which have spilled into the broader crypto market. Following this, there have been rumors circulating about insolvency at major crypto hedge fund Three Arrows Capital, with crypto lender BlockFi being named as one counterparty affected.


Learn more: 
BlockFi, Crypto.com, and Others Come Forward as Three Arrows Hires Advisers, Babel Finance Pauses Withdrawals
Celsius ‘In Dialogue’ With ‘Regulators & Officials’, Gets Quieter About Its Operations 

Three Arrows Capital ‘Ghosted Us’ After USD 1M Went Missing, Trading Firm Claims
 – Not Enough Liquidity for Celsius to Sell Staked Ethereum in Open Market – Analyst

Celsius Problems Impact Nuri’s Bitcoin Interest Accounts
Celsius Reportedly Hiring ‘Restructuring Lawyers’ as Bankruptcy Speculation Mounts, CEL Pumps & Dumps

Read More: Babel Finance to Repay ‘Some Debts’ and ‘Ease Its Short-term Liquidity Pressure’

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.