Crypto lending platform Babel Finance having halted client withdrawals and redemption for all products last Friday, told Bloomberg that the company will to delay payments of its debts having reached an agreement with major counterparts and customers. However, whether withdrawals will be resumed is still uncertain for now.

The crypto firm based in Hong Kong said in a statement that the initial agreement of debt repayments had eased its short-term liquidity pressures. The relief comes as a result of the company implementing an emergency assessment of its business operations.

The distressed crypto lender is in talks with large institutions for solutions, including setting up a new structure to take up some of the debts.

After Celsius blocked all withdrawals, swaps, and transfers between accounts and failed to provide an immediate solution to its users, Babel Finance used the same approach last Friday also citing extreme market conditions as the reason for such a move.

According to Bloomberg, the firm was valued at $2 billion after a previous funding round backed by renowned VCs such as Sequoia Capital China, Dragonfly Capital, Dan Tapiero’s 10T Holdings, and Jeneration Capital last month. However, the company was in outstanding debt of more than $3 billion at the end of last year.

Featured image source: Coincu News