$ 118,081.3
BTC
0.05 %
$ 2,974.00
ETH
-1.02 %
$ 0.7293
ADA
-0.57 %
$ 693.50
BNB
0.59 %
$ 162.99
SOL
-1.13 %

Usha Yadav
Jun 21, 2022

Babel Finance Reaches an Agreement with a Counterparty Debtor

Babel Finance
Babel Finance, a Hong Kong-based crypto lending service, has resolved some of its immediate liquidity issues by establishing debt repayment agreements with a few of its counterparties.

Following "extraordinary liquidity challenges" in the current bear market, the firm ordered a temporary suspension of redemptions and withdrawals from its products on Friday, as previously reported. The firm indicated that it was acting quickly to protect clients and communicate with "all involved parties."

Babel Finance claimed in a Monday update that it has taken three initiatives to help alleviate its present liquidity problem. Among them are performing an emergency review of the company's business activities, engaging with shareholders/investors, and negotiating "preliminary agreements" for some debt repayments. The corporation did not provide specifics on the debt repayment options, such as interest rates or maturity dates, but did state that:

"We have communicated with major counterparties and relevant customers and reached preliminary agreements on the repayment period of some debts, which has eased the company's short-term liquidity pressure."

Babel Finance's Shareholders and Investors

The company also indicated that it informed some shareholders and investors about the possibility of obtaining liquidity help and that it will "actively fulfil its legal obligations to customers and endeavour to avoid future transmission and dispersion of liquidity concerns." The company's cash problems came barely a month after raising $80 million in a Series B investment round at a $2 billion value. Zoo Capital, Sequoia Capital China, Dragonfly Capital, and Tiger Global Management led a $40 million Series A fundraising round for the company last year. According to the company, Babel Finance provides financial exposure to Bitcoin (BTC), Ether (ETH), and stablecoins to a "limited clientele of roughly 500 customers."

Babel Finance Reaches an Agreement with a Counterparty Debtor
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Related News

Shiba Inu Sees Over 1 Billion SHIB Burned in a Week, But Nuance is Key
LIVE CRYPTO NEWS

Shiba Inu Sees Over 1 Billion SHIB Burned in a Week, But Nuance is Key

Over the past week, more than 1 billion Shiba Inu (SHIB) tokens, specifically 1,053,508,245 SHIB, have been permanently removed from circulation, marking a significa ...
Sujit Kumaran hour ago
XRP Price Jumps 26% on Whale Accumulation & Short Squeeze
LIVE CRYPTO NEWS

XRP Price Jumps 26% on Whale Accumulation & Short Squeeze

On-chain data reveals a significant driver behind XRP’s current rally: an unprecedented level of accumulation by “whales.” The number of wallets ho ...
Sujit Kumar4 hours ago
Robert Kiyosaki Buys Bitcoin at $110K, Aims for More on Dips
LIVE CRYPTO NEWS

Robert Kiyosaki Buys Bitcoin at $110K, Aims for More on Dips

Renowned author and financial guru Robert Kiyosaki, best known for “Rich Dad Poor Dad,” has publicly revealed his latest Bitcoin acquisition at the $110, ...
Sujit Kumar5 hours ago
Cardano Founder Charles Hoskinson Predicts Bitcoin Could Soar to $250,000
LIVE CRYPTO NEWS

Cardano Founder Charles Hoskinson Predicts Bitcoin Could Soar to $250,000

Charles Hoskinson, the visionary founder of Cardano, has reignited his bold prediction for Bitcoin, suggesting the world’s leading cryptocurrency could eventua ...
Sujit Kumara day ago
PinkSale AutoStakeYield Fair Launch ad
Solana Shows Bullish Signs: Can SOL Target $185 Next?
LIVE CRYPTO NEWS

Solana Shows Bullish Signs: Can SOL Target $185 Next?

Solana (SOL) is currently displaying renewed bullish momentum, sparking optimism among investors and analysts about its potential for further price appreciation. Fol ...
Sujit Kumara day ago