Crypto lender Babel Finance on Monday said it has signed preliminary agreements with several counterparties on the repayment period of some debts. The preliminary agreements will help ease the company’s short-term liquidity pressure.
Moreover, the firm will continue to seek liquidity support from shareholders and potential investors.
Babel Finance Looks to Solve Liquidity Crisis
Last week, the firm suspended withdrawals citing unusual liquidity pressure amid extreme market conditions. Babel Finance in an official announcement on June 20 said the firm is taking several steps to solve its liquidity crisis. A statement on the website reads:
“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.”
Moreover, Babel Finance is currently carrying out an emergency assessment of business operations in order to understand the company’s liquidity status. The Babel Finance management is actively communicating with shareholders and potential investors to solve or ease the liquidity pressure.
