Babel Finance Loses $280 Million Due To This Trading Failure

Babel Finance loses $280 million due to trading failure with customer funds.

The Asian crypto lender suffered heavy losses due to proprietary trading with customer funds.

[{"selector":"#anim-da5bacf2-3b1a-40ec-b665-9840cf13acb7","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7d48f2ac-17ab-46f3-bfa9-6dc744004810","keyframes":{"transform":["translate3d(-77.7948%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The information was obtained from of the restructuring proposal deck.

[{"selector":"#anim-0f56bc9e-c3d2-4d70-a03b-b875e513b1b2","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2cc0f9ac-1235-4e8d-a223-6b58b068c49d","keyframes":{"transform":["translate3d(-92.41803%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The deck revealed that Babel lost more than $280 million in Bitcoin and Ether due to its proprietary trading failure.

[{"selector":"#anim-77917dcc-e688-4813-9ae4-3aab3bcb76e8","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-46c6538b-b34d-4c00-b90b-c7dc4c3402cc","keyframes":{"transform":["translate3d(-92.21312%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0574389a-2761-42fe-aa65-2f5cc6e19318 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}]

It lost around 8,000 BTC and 56,000 ETH after encountering liquidation due to the market downturn.

[{"selector":"#anim-d9de1e78-4cd5-4125-b5d1-c93d8535d755","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cc8bc3c8-a92a-47aa-9d2c-9d647f2cf23c","keyframes":{"transform":["translate3d(-92.41803%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Due to these losses, Babel's lending and trading departments are unable to meet margin calls from its clients.

[{"selector":"#anim-f3c129b5-bdee-4b39-83f2-766ab1bc0efc","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-28393d37-b5f1-4b82-8f1f-97bb24a37021","keyframes":{"transform":["translate3d(-92.62295%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Babel Finance defines its proprietary trading business as a "risky" one yet it failed to equivocate its position.

[{"selector":"#anim-7722ac40-646c-4858-ae52-b5a037717c6a","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a95de307-0345-4294-b3c1-25eade395933","keyframes":{"transform":["translate3d(-93.85246%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5fa1792a-0757-445c-9704-e0a322691a31 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-50.480518686325794%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}]

Last month Babel unexpectedly halted its client withdrawals.

[{"selector":"#anim-a0ca0a63-2ecc-4125-beb9-da767f9daa1b","keyframes":{"opacity":[0,1]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2afe55ba-cabd-4a5d-8d00-ce0d6653d539","keyframes":{"transform":["translate3d(-92.41803%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1800,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-08948d49-9d8f-4f13-8eb9-bef261355282","keyframes":{"transform":["translate3d(-219.29823%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-e451d263-abe6-4614-955e-a523aa6470e4","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}] [{"selector":"#anim-461883d4-60b7-455c-afeb-40bcdee4b3f9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.179687404002955%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] More Crypto Stories...