Babel Finance Reaches Debt Agreements with Partners After Blocking Users From Withdrawing

Hong Kong-based crypto lender Babel Finance has alleviated some liquidity difficulties by reaching repayment agreements with some of its partners.

Babel Finance suspended the acquisition and recall of its products on June 17 due to unusual liquidity pressures in the current bear market. However, the company said it is taking quick action to protect its customers and communicating with all stakeholders to improve the situation.

Since the incident, the company has taken three crucial steps to help alleviate liquidity, including making an urgent assessment of the company’s business, communicating with shareholders/investors, and reaching a preliminary agreement on some debt payments.

Babel Finance does not detail specific repayment plans, such as interest rates or maturity dates, but has noted that it has discussed with certain shareholders and investors the possibility of receiving liquidity support and will actively fulfill its liabilities to customers to avoid further transmission of liquidity risk.

“We thank our customers for their understanding and support during this time. Babel Finance hopes to receive even more support from its partners.”

Babel Finance’s liquidity issue came just a month after the company raised $80 million in the $2 billion Series B funding round. Last year, Babel Finance also raised $40 million in Series A funding, led by Zoo Capital, Sequoia Capital China, Dragonfly Capital, and Tiger Global Management.

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