Creditor Cryptocurrencies Babel Finance is in the eyes of justice after it was revealed he used his clients’ funds to try to capitalize on speculation but only caused losses of up to $280 million.
Babel Finance suspended withdrawals from its platform, creating havoc among its users. This case seems to be on the same path as Celsius network, which finally declared itself bankrupt.
Cryptocurrency Volatility
Babel Finance promised big money back to customers who kept their cryptocurrencies with them (in addition to being allowed to take foreign currency). However, he did not disclose that he used other people’s bitcoins to trade them, falling into his own market speculation, but this could also have negative consequences for millionaires.
In accordance with Block, Babel Finance lost 8,000 bitcoins and 56,000 ethereum in June on this modality, about $280 million at the average rate.
Bitcoin’s fall to $20,000 “caused significant losses” that led to the liquidation of several trading accounts, claiming thousands of cryptocurrencies.
similar crises
Due to the financial crisis, Babel Finance suspended the withdrawal of funds from the platform, citing “big fluctuations in the market” but promising a restructuring plan.
But by acting “like a bank,” it also brought down the economies of its partners. For example, Thailand-based exchange Zipmex filed for bankruptcy, saying it invested $48 million in Babel and another $5 million in the infamous exchange. Celsius network.
Babel Finance he wants to convert $150 million of his debt into bonds and start raising millions in investments to save his company. Will you manage?
We recommend you METADATA, an RPP tech podcast. News, analytics, reviews, recommendations and everything you need to know about the world of technology. To hear better, #StayHome.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.