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Crypto Lender Babel Finance Announces Steps To Improve Its Liquidity Situation
Babel Finance says it has reached “preliminary agreements” with major counterparties “on the repayment period of some debts.” The announcement comes three days after Babel Finance abruptly halted client withdrawals.
Muskaan T.
12:34 20th Jun, 2022
Adoption

Crypto financial services firm Babel Finance, which abruptly suspended withdrawals last week, has announced several steps to improve its liquidity situation.

Sharing the news with The Block in a statement on Monday, Babel Finance said it carried out an emergency assessment of its business operations to understand its liquidity status and has also reached “preliminary agreements on the repayment period of some debts” with major counterparties and customers, “which has eased the company's short-term liquidity pressure.”

Today’s announcement doesn’t mean withdrawals — which were suspended on Friday because it was facing "unusual liquidity pressures" — are resumed, however. The company said it has “actively communicated with shareholders and potential investors, and will continue to communicate and obtain liquidity support.”

Amid reports that Babel Finance has informed partners it's insolvent, a company spokesperson told The Block that “no, we never told partners that.”

When asked whether Babel Finance is facing liquidity issues due to exposure to troubled crypto hedge fund Three Arrows Capital, the spokesperson said, "Babel Finance has no business with Three Arrow Capital."

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