Another Crypto Lending Platform Freezes Withdrawals as Industry’s Downward Spiral Continues

Another major crypto lending platform has stopped letting people withdraw their holdings.

Babel Finance, which is based in Hong Kong and has 500 customers, said Friday that withdrawals from its services would be “temporarily suspended” as cryptocurrencies face a sharp and widespread sell-off.

“The crypto market has seen major fluctuations and some institutions in the industry have experienced conductive risk events,” Babel said on its website. “Due to the current situation, Babel Finance is facing unusual liquidity pressures.”

Babel did not immediately respond to Insider’s request for comment.

The company was last valued at $2 billion in May, Reuters reported, and only allows trading and lending of bitcoin, ethereum and stablecoins.

It’s also not the only lending platform to halt withdrawals as liquidity pressures mount amid a deepening market rout.

Founders Zhu Su and Kyle Davies, meanwhile, have been “ghosting” their business partners as they grapple with insolvency issues, Vice reported.

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