Cryptocurrency lender Babel Finance has halted withdrawals and redemptions in what it has termed as unusual liquidity pressures.
The announcement comes after another staking protocol, Finblox decided to restrict withdrawals to $1,500 per month due to links with Three Arrows Capital.
Three Arrows Capital is currently facing insolvency, with multiple exchanges having liquidated their positions in the firm. 3AC has also been hit by margin calls after recording losses from some of its crypto investments.
The cryptocurrency market is currently facing extended bearish momentum, which has significantly seen most tokens tank. Bitcoin is trading at $21,164 and ether at $1,104 after tanking 29.54 and 37.77%, respectively, in the past week.
Babel closed $80 million in a Series B round last month, putting its valuation at $2 billion.
Source: Coindesk