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

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

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 …

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