According to the latest reports, Babel Finance, a crypto lender, is hiring Houlihan Lokey, a US investment bank following the halt of withdrawals and liquidity issues.
A source familiar with the matter revealed that the firm is going to the next leading crypto firm that would be receiving buy-in from creditors or declaring default or insolvency.
On June 17, citing “unusual liquidity pressures” Babel Finance suddenly stopped the withdrawals. It seems like there is a trend of halting withdrawals in the crypto industry. Last week in a statement the firm said that it seeks to fulfill its legal responsibilities toward its customers by avoiding even more transmission and diffusion of liquidity risks.
CoinFlex, a cryptocurrency exchange, stopped withdrawals for its customers last week. Further sharing that the firm needs around $47 million from an investor. On Tuesday, it revealed that the investor is “Bitcoin Jesus” Roger Ver.
Meanwhile, Three Arrows Capitals, a leading crypto fund that invested heavily in Luna before its class, has entered into liquidation after facing legal challenges from creditors regarding unpaid debts.
Houlihan Lokey focuses on mergers and acquisitions, capital markets, financial restructuring, and valuation, according to its website.
As per the official website of Houlihan Lokey, the main focus of it is on capital markets, financial restructuring, valuation, mergers, and acquisitions.
Babel Finance was founded in 2018. It offers lending and trading services in Bitcoin, Ether, and stablecoins to crypto miners and high-net-worth accredited investors.
In May, the firm raised funds worth roughly $80 million at a $2 billion valuation. Jeneration Capital and 10T Holdings were the main investors in the round along with current shareholders BAI Capital and Dragonfly Capital.
In other news, Bable has also been conducting layoffs and a string of resignations has hit the company. Two of the leaving employees are Yulong Liu, who has served as the head of partnerships at the firm for around three years, and Jacynth Wang, the communications director.
The crypto market has experienced one of the worst crashes in history. Flashship currencies, Bitcoin and Ethereum suffered the wrath of the crypto winter and have experienced steep drops in their prices.