Babel Finance Lost Over $280 Mln Trading With Client Funds
Crypto platform Babel Finance suffered over $280 mln in losses trading with customer funds. The platform lost about 8,000 BTC and 56,000 ETH when liquidating positions due to a significant price drop in the cryptomarket in June. The crypto platform also noted that it failed to insure its positions, and the work of the company's traders was not controlled for risks. Because of these losses, Babel Finance was unable to meet the demands of its clients.
According to media reports, as part of the restructuring plan, Babel Finance plans to convert $150 mln of debt into convertible bonds. The platform also hopes to raise between $250 mln and $300 mln in convertible bonds and a $200 mln revolving credit to help rebuild the business.
In mid-June, Babel Finance announced a temporary suspension of payouts and withdrawals related to its products. The company cited a liquidity crisis as the reason for this decision.
Image: The Crypto Times