In less than a week after crypto platform Celsius paused withdrawals from consumers, another crypto lender made a similar move, as major cryptocurrencies crashed in recent weeks, with bitcoin trading down 70% from its all-time high.
Hong Kong-based crypto financial service provider Babel Finance has halted redemptions and withdrawals from all its products, according to a Friday notice by the company.
“Recently, the crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events. Due to the current situation, Babel Finance is facing unusual liquidity pressures,” the firm wrote.
“We are in close communication with all related parties on the actions we are taking in order to best protect our customers,” it added.
Several crypto companies have recently showed signs of trouble. As the biggest crypto lender, Celsius has reportedly hired restructuring attorneys to advise on possible solutions for its mounting financial problems, according to a report from The Wall Street Journal, after the company suspended withdrawals on Sunday.
Crypto hedge fund Three Arrows, one of the biggest players in the space, hired legal and financial advisers to help develop a solution for its investors and lenders, after suffering heavy losses, according to a separated article by The Wall Street Journal citing the firm’s co-founder.
Read: Crypto crash: Celsius, Three Arrows potential contagion worries investors. Here’s what to watch
is trading at around $20,634 on Friday, down 0.9% over the past 24 hours, according to CoinDesk data. Ether
is down 0.4% to around $1,083.