Top Employees Of Babel Finance Leave The Company As Client Funds Remain Frozen
Given the current liquidity difficulties that could lead to bankruptcy, the situation seems to be getting worse for Babel Finance as a number of top employees of the company are looking to leave.
One is Yulong Liu, head of global partnerships, who plans to leave by the end of this month or early next month, according to a person familiar with the situation. Liu frequently represented Babel at public events and spoke last month when the firm raised $80 million at a $2 billion valuation. He recently updated LinkedIn to say he left Babel this month and has since deleted his profile.
Mr. Yulong Liu has worked for Babel Finance for nearly three years. As head of partnerships, he focused on finding new relationships for the company, including institutional clients depositing and borrowing. However, before the above news, a spokesman for Babel said that Mr. Liu was still working for the company and declined to comment on his plans to leave the company.
Founded in 2018, Hong Kong-based Babel Finance provides lending and trading services to a claimed 500 institutional clients. The firm recently said it had an outstanding loan balance of more than $3 billion at the end of 2021, with an average monthly trading volume of $800 million in derivatives.
Besides, Babel also lost people in his media team. These include communications director Jacynth Wang and Yiwei Wang, global PR team leader. More seriously, several other top employees were quick to delete their Babel LinkedIn profiles. These include Lei Tong – Lending Manager and Ryan Wu – CEO and COO of Babel Asia.
Interestingly, Babel Finance has had a rather “dark” past. In October 2020, leaked audio recordings showed that the company leveraged user funds to trade Bitcoin and faced a potential default risk as BTC plummeted during this period.
At the time, Tether was said to have saved Babel Finance, by extending the margin call period for Babel to one month to give the company more time to consolidate its collateral.
However, about two months ago Tether CTO Paolo officially announced the cessation of cooperation with Babel as the world’s largest stablecoin issuer is also facing a lot of FUD from the community.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews