coinnounce.com
First, Celsius Network, Voyager, Vauld, and BlockFi, and now the next crypto company that seems to have lost a lot of money from its customers. Hong Kong-based Babel Finance, which specializes in crypto lending, went into a tailspin in June.
JUST IN: Babel Finance allegedly lost $280 million after using customer funds to trade #Bitcoin and #Ethereum, The Block reports.
— Watcher.Guru (@WatcherGuru) July 29, 2022
Like the other companies mentioned, payments to customers had to be stopped due to the crypto crash. Babel Finance, which only had an investment of 480 million in May, was no longer liquid a month later.
New documents from The Block show that the Proprietary Trading Team has gambled away crypto assets valued at around $280 million. It is about 8,000 BTC, and 56,000 ETH lost in the market crash.
Now Babel Finance, which only in May described itself as the “world’s leading provider of crypto financial services for large customers,” is trying to plug this huge hole with investor funds. According to the documents, an acute attempt is being made to convert $150 million of the largest creditor debt into convertible loans is being sought. Then a $200 million revolving credit line is also to be obtained.
Babel Finance is one of those crypto unicorns showered with money by well-known investors this year. At the end of 2021, the company reportedly had an outstanding loan balance of more than $3 billion and an average monthly derivatives trading volume of $800 million.