Crypto lender Babel Finance has announced that it has secured some preliminary agreements with some of its major counterparties regarding debt repayment amid the current market conditions.
The announcement, published on Monday, comes days after the Hong Kong-based lender suspended withdrawals on account of massive liquidity pressure.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
But in its latest update on the issue, the company noted that it had “carried out an emergency assessment” of its business operations in a bid to have a clear picture of its liquidity status.
Accordingly, the company had contacted its “major counterparties and relevant customers,” the statement added.
The Babel team noted that after the communication, they had struck preliminary agreements on debt repayment period. The move, according to the platform, has helped ease the short-term liquidity pressure that had led to last week’s drastic development.
We have actively communicated with shareholders and potential investors, and will continue to communicate and obtain liquidity support.”
Babel Finance in a Notice on Monday, 20 June 2022
Babel Finance was founded on 18 March 2018 by Flex Yang and Del Wang as Babel Bank. It rebranded to its current name in June 2019, with its focus as a commercial crypto lender.
In May 2022, Babel Finance joined the crypto unicorn club after raising $80 million in a Series B funding round at a valuation of $2 billion.
Capital.com
9.3/10
75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Source: https://invezz.com/news/2022/06/20/babel-finance-secures-debt-repayment-agreements-with-major-counterparties/