{"id":30385,"date":"2022-06-21T01:44:35","date_gmt":"2022-06-21T05:44:35","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=30385"},"modified":"2022-06-21T01:44:47","modified_gmt":"2022-06-21T05:44:47","slug":"babel-finance-reaches-counterparty-debt-repayment-agreement","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/babel-finance-reaches-counterparty-debt-repayment-agreement\/","title":{"rendered":"Babel Finance Reaches Counterparty Debt Repayment Agreement"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\" id=\"h-babel-finance-stressed-that-it-will-actively-fulfill-its-legal-responsibilities-to-customers-and-try-to-avoid-further-transmission-and-diffusion-of-liquidity-risks\">Babel Finance stressed that it will actively fulfill its legal responsibilities to customers and try to avoid further transmission and diffusion of liquidity risks.<\/h5>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" data-id=\"30387\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1-1024x576.webp\" alt=\"\" class=\"wp-image-30387\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1-1024x576.webp 1024w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1-300x169.webp 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1-768x432.webp 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1-150x84.webp 150w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1-750x422.webp 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1-1140x641.webp 1140w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/figure>\n\n\n\n<p>Babel Finance, a Hong Kong-based crypto lending service, has resolved some of its immediate liquidity issues by striking debt repayment agreements with several of its counterparties.<\/p>\n\n\n\n<p>As previously reported, on June 17, the firm ordered a temporary halt of redemptions and withdrawals from its products, citing &#8220;exceptional liquidity challenges&#8221; in the present bear market. The organization indicated that it was acting quickly to protect customers and engage with &#8220;all associated parties.&#8221;<\/p>\n\n\n\n<p>Babel Finance claimed in a June 20 <a href=\"https:\/\/babel.finance\/article-views.html?id=51\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">statement<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a> that it has since taken three initiatives to help alleviate its present liquidity problem. These include doing an emergency review of the company's operations, contacting shareholders\/investors, and negotiating &#8220;preliminary agreements&#8221; for some debt repayments.<\/p>\n\n\n\n<p>The corporation did not provide specifics about the debt repayment programs, such as interest rates or maturity dates, but did state:<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>&#8220;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.\u201d<\/p><\/blockquote><\/figure>\n\n\n\n<p>The company also indicated that it informed some shareholders and investors about the possibility of obtaining liquidity assistance and that it will &#8220;actively perform its legal commitments to consumers and endeavor to avoid future transmission and dispersion of liquidity issues.&#8221;<\/p>\n\n\n\n<p>&#8220;We thank our consumers for their patience and support during this difficult time, and we expect to get additional assistance from our partners,&#8221; the company said.<\/p>\n\n\n\n<p>The company's cash problems came barely a month after it raised $80 million in a Series B investment <a href=\"https:\/\/www.prnewswire.com\/news-releases\/babel-finance-closes-us80-million-series-b-fundraising-round-at-us2-billion-valuation-301554729.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">round<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> at a $2 billion value. The startup also raised $40 million in a Series A fundraising round led by Zoo Capital, Sequoia Capital China, Dragonfly Capital, and Tiger Global Management the year before.<\/p>\n\n\n\n<p>According to the company, Babel Finance provides financial exposure to Bitcoin (<a href=\"https:\/\/coinscreed.com\/staging\/bitcoin-long-term-holders-are-giving-up-data-shows.html\">BTC<\/a>), Ether (<a href=\"https:\/\/coinscreed.com\/staging\/ethereum-eth-price-drops-to-1064-in-one-day-heres-why-slip-to-1016-is-detrimental.html\">ETH<\/a>), and stablecoins to a &#8220;limited clientele of roughly 500 customers.&#8221;<\/p>\n\n\n\n<p>The company joins a slew of cryptocurrency firms experiencing liquidity issues in the current bear market, including Three Arrows Capital, <a href=\"https:\/\/www.google.com\/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjQuous6r34AhXSZjABHYLPDJkQFnoECAoQAQ&url=https%3A%2F%2Fcoinscreed.com%2Fstaging%2Fcrypto-liquidations-spike-to-480m-as-crypto-crash-continues.html&usg=AOvVaw0ueskb33j8i_01UQ21VfBa\" target=\"_blank\" rel=\"noreferrer noopener\">Celsius<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a>, and Finblox, to name a few. The latter two have also paused withdrawals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Babel Finance stressed that it will actively fulfill its legal responsibilities to customers and try to avoid further transmission and diffusion of liquidity risks. Babel Finance, a Hong Kong-based crypto lending service, has resolved some of its immediate liquidity issues by striking debt repayment agreements with several of its counterparties. As previously reported, on June [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":30387,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[10699,376],"class_list":["post-30385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-babel-finance","tag-cryptocurrencies"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/Babel-Finance-1200x675-1.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/30385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=30385"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/30385\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/30387"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=30385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=30385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=30385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}