FinanceLane
  • Funding
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Commodities
    • Forex
    • Private Equity
    • Real Estate
    • Crypto Investing
  • Lending
    • Personal Loan
    • Business Loan
    • Mortgage
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Health Insurance
    • Auto Insurance
    • Education Insurance
    • General Insurance
  • Banking
    • Individual Banking
    • Business Banking
    • Investment Banking
    • Neo Banking
    • Payments Bank
  • Crypto
    • Crypto Coins
    • Crypto Trading
    • Bitcoin
    • Blockchain
    • DAPP
    • Crypto Investing
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Payments
    • Digital Banks
    • Alternative Financing
    • Asset Management
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Login
No Result
View All Result
crypto
  • Crypto Coins
  • Crypto Trading
  • Bitcoin
  • Blockchain
  • DAPP
  • Crypto Investing
FinanceLane
Home Crypto Bitcoin

Babel Finance Lost Over $280m in Proprietary Trading with Customer Funds

BlockchainbyBlockchain
July 29, 2022
in Bitcoin, Blockchain, Blockchain News, Crypto
Reading Time: 2 mins read

Babel Finance has undergone severe loss as it executed proprietary trading with customer funds.

babel finance_1200.jpg

The Asian crypto lender has been in trouble and abruptly suspended client withdrawals from last month. This report comes from the company’s restructuring proposal deck.

Due to proprietary trading failure, the company lost more than $280 million in Bitcoin and Ether, according to the deck dated July 2022.

While in June, due to a heavy market downturn, Babel Finance specifically lost around 8,000 BTC and 56,000 ETH after facing liquidation.

“In that volatile week of June when BTC fell precipitously from 30k to 20k, unhedged positions in [proprietary trading] accounts chalked up significant losses, directly leading to forced liquidation of multiple Trading Accounts and wiped out ~8,000 BTC and ~56,000 ETH,” reads the deck.

Following these heavy losses, Babel’s lending and trading departments have been unable to meet margin calls.

According to the deck, “conclusion: Single point of failure – The Proprietary Trading team’s failed operation falls outside of the company’s normal business which has otherwise been running smoothly with proper management and control.”

The Block said that Babel Finance describes its proprietary trading business as “risky”, yet it failed to hedge its positions.

“A Proprietary Trading team operates several Trading Accounts not controlled or monitored by Trading Department; no trading mandate or risk controls were implemented for these accounts; no PnL [profit and loss] was reported,” per the deck.

Babel Finance has also reportedly played with customers’ funds in 2020. 

According to a leaked recording, Babel Finance, in October 2020, leveraged some user funds to boost a bitcoin trade. Following that, the company face potential default risks during that year’s Black Thursday market crash.

However, as per the recordings, Tether reportedly stepped in to save Babel Finance at the time.

Image source: Shutterstock Read The Original Article on Blockchain.News

Tags: BABELFINANCEBitcoinBlockchainCryptoExchanges

Related Topics

Blockchain

Opensea Opens Bulk NFT Listings & Purchases for Users

Bitcoin

Bitcoin’s Lightning Network Capacity Crosses 5,000 BTC Benchmark

Prev Next

You May Like

Blockchain

Opensea Opens Bulk NFT Listings & Purchases for Users

Bitcoin

Bitcoin’s Lightning Network Capacity Crosses 5,000 BTC Benchmark

Advisory

Bank FDs vs post office term deposit: Which offers senior citizens higher interest rate for short term

Blockchain

Crypto.com Offers Google Pay and Apple Pay Support for Canadian Users

Blockchain News

Coinbase Introduces PayID and Premium Services for Aussie Retail Customers

Blockchain News

Yuga Labs Sets Up BAYC Community Council to Boost Innovations

Advisory

Central govt employees: General Provident Fund (GPF), CPF interest rates announced for Oct-Dec 2022 quarter

Bitcoin

Bitcoin Crosses $20K Mark, as Whales Continue to Accumulate Tokens

Financial News

Bitcoin

Marathon Digital Releases Q1Result, Generating 1,259 BTC with YoY Increase of 556%

Blockchain
by Blockchain
Advisory

How employees’ working hours, annual leave will change under the new labour laws

FinanceLane
by FinanceLane
Bitcoin

Is Bitcoin Getting Ready to Rebound in the Wake of Interest Rate Hikes?

Blockchain
by Blockchain
Bitcoin

Crypto Mining Firm EZ Blockchain Launches Low-Emission Custody Hosting Service

Blockchain
by Blockchain
Advisory

Bajaj Finance increases FD interest rates by up to 20 bps

FinanceLane
by FinanceLane
Bitcoin

Titanium Blockchain’s CEO Pleas Guilty of ICO Fraud worth $21m

Blockchain
by Blockchain
Advisory

Union Bank of India cuts savings account interest rate for this amount

FinanceLane
by FinanceLane
Advisory

PM Kisan eKYC deadline is July 31: Here’s how to complete eKYC online, offline

FinanceLane
by FinanceLane
Bitcoin

Bitcoin Faces Major Resistance at 200-Week Moving Average

Blockchain
by Blockchain
Bitcoin

Tesla Earns $64m Profits from Selling 75% of BTC Holdings

Blockchain
by Blockchain
Advisory

How much worse will loan interest rates get for borrowers this FY? Here’s what experts say

FinanceLane
by FinanceLane
Blockchain

Opinion: Why Ethereum’s ‘Merge’ Won’t Lower Gas Fees?

Blockchain
by Blockchain
Load More
FinanceLane.com
  • Disclaimer
  • Privacy Policy
  • Terms of use
  • Subscribe
  • Contact

Subscribe to get the latest updates

Follow us on

© 2022 FinanceLane.com. All rights reserved.

  • Home
  • Funding
    • Equity Funding
    • Debt Funding
    • Real Estate Funding
    • Crowdfunding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2022 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

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
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.