• About us
  • Advertise With Us
  • Become a Contributor
  • Guest Posting Service
  • Privacy Policy
  • Submit Press Release
  • Terms & Conditions
  • Contact us
Blockchain Financial Times
  • Home
  • Market
    • Analysis
    • Guide
  • Binance
  • Bitcoin
  • Blockchain
  • Coinbase
  • Crypto
    • Crypto Exchange
  • Ethereum
  • Finance
  • Litecoin
  • Ripple
  • Tether
No Result
View All Result
  • Home
  • Market
    • Analysis
    • Guide
  • Binance
  • Bitcoin
  • Blockchain
  • Coinbase
  • Crypto
    • Crypto Exchange
  • Ethereum
  • Finance
  • Litecoin
  • Ripple
  • Tether
No Result
View All Result
Latest News and Updates on Cryptocurrency
No Result
View All Result
Home Crypto Exchange

Babel Finance lost $280 million of customer funds: report

admin by admin
August 3, 2022
149 1
Babel Finance lost $280 million of customer funds: report
Share on FacebookShare on Twitter

Babel’s losses included 8,000 BTC and 56,000 ETH wiped out in unhedged proprietary trading positions, a proposal deck cited in a recent report detailed.

Per details in the proposal, the Babel Finance’s losses came via proprietary trading of 8,000 bitcoin (BTC) and 56,000 ether (ETH). The failed bets happened last month as the platform faced liquidation amid massive deleveraging across the crypto market.

The firm says in the deck that as BTC price plunged from $30,000 to $20,000, unhedged positions “chalked up significant losses, directly leading to forced liquidation of multiple Trading Accounts.” 

It’s these accounts that wiped out approximately 8k BTC and 56k ETH worth over $280 million in customer funds.

Babel’s capitulation spiraled as its lending and trading units failed to meet margin calls – and no customer funds to continue honouring withdrawals.

Trouble hit not long after the financial services provider raised $80 million in its Series B financing round in May. The financing, secured at a valuation of $2 billion, saw investments from Jeneration Capital, BAI Capital, 10T, Circle Ventures and Dragonfly Capital among other investors.

The market downturn and the proprietary trading failure has Babel Finance trending alongside other troubled crypto firms like Voyager Digital and Celsius Network, which have both filed for bankruptcy. 

The collapse of crypto hedge fund Three Arrows Capital (3AC) and the contagion that followed only heightened the uncertainty.

As part of its restructuring plans, the Babel team is looking to convert $150 million of its largest creditors’ debt into convertible bonds. The lender also seeks to add to its survival kit $250 million to $300 million via convertible bonds, with further funds likely to come from a $200 million revolving credit facility.

The plan, per the proposal deck, is to ultimately incorporate Babel Finance’s major creditors as shareholders.

The post Babel Finance lost $280 million of customer funds: report appeared first on CoinJournal.

source

Tags: Crypto NewsCrypto WorldCryptocurrency NewsToday Crypto UpdateTop Cryptocurrency News
admin

admin

Recommended.

Cross-Chain Bridge Nomad Loses $190 Million Making It 2022’s Third-Largest Crypto Heist

Cross-Chain Bridge Nomad Loses $190 Million Making It 2022’s Third-Largest Crypto Heist

August 3, 2022

What Cardano’s Highly Anticipated Vasil Hard Fork Will Bring

October 13, 2022

Trending.

No Content Available

Blockchain Financial Times

Get the latest news on Cryptocurrency and stay up-to-date ... Cryptocurrency prices today

Follow Us

Categories

  • Analysis
  • Binance
  • Bitcoin
  • Blockchain
  • BNB Chain
  • Cardano
  • Coinbase
  • Crypto
  • Crypto Exchange
  • DeFi
  • Ethereum
  • Finance
  • Guide
  • Litecoin
  • Market
  • Metaverse
  • Polkadot
  • Ripple
  • Solana
  • Tether

Tags

bnb chain explorer bnb chain metamask bnb chain network bnb chain price Business Wire Pricing Cryptocurrency News Crypto News Crypto World DeFi coin DeFi Crypto Ethereum blockchain consultant Ethereum Digital Marketing agency Ethereum Digital Marketing Company Ethereum Marketing consultant ethereum news ethereum proof of stake ethereum value Latest Crypto News Marketwired Pricing metaverse app metaverse crypto metaverse stock music video press release Polkadot Digital Marketing Company Polkadot Marketing Agency Polkadot Marketing consultant Polkadot Online Marketing Agency press release for music video PRNewswire Cost PRNewswire Pricing PRWeb Pricing solana crypto Solana Marketing Experts Solana Marketing Strategy solana news Solana Online Marketing Agency solana price solana to usd Today Crypto Update Top Cryptocurrency News video news release video news release distribution video news release examples video news release template video press release

Recent News

PR NEWS WIRES – At the point when To Compose A Press Release And How To Get It Distributed

November 29, 2022

PR Wires – The Force of a Press Release

November 28, 2022
  • About us
  • Advertise With Us
  • Become a Contributor
  • Guest Posting Service
  • Privacy Policy
  • Submit Press Release
  • Terms & Conditions

© 2022 Blockchain Financial Times.

No Result
View All Result
  • Home

© 2022 Blockchain Financial Times.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In