Crypto-financial services provider Babel Finance claims to have reached certain “preliminary agreements” with “major” and “relevant” players on the repayment period of “some debts” – easing its short-term liquidity pressure.
Per today’s notice by the company,
“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.”
As for the other steps the Babel Finance management has taken to “alleviate the company’s liquidity situation,” the notice states that:
- the company has performed an emergency assessment of its business operations to understand its liquidity status;
- it communicated with shareholders and potential investors, and says it will “continue to communicate and obtain liquidity support.”
The firm concluded by saying that,
Babel Finance will actively fulfill its legal responsibilities to customers and strive to avoid further transmission and diffusion of liquidity risks.
As reported, the company announced last Friday that it was “facing unusual liquidity pressures” given the situation in the crypto markets – and that it is “temporarily” suspending redemptions and withdrawals.
This is happening after the massive Terra crash in May and at a time when major crypto lender Celsius continues to face issues stemming from the major trouble it got into last week — both of which have spilled into the broader crypto market. Following this, there have been rumors circulating about insolvency at major crypto hedge fund Three Arrows Capital, with crypto lender BlockFi being named as one counterparty affected.