Cryptocurrencies
Troubled Crypto Lender Babel Lost Big While Trading Client Funds
- Proprietary trading arm used wealth-management funds: document
- In June plunge, Babel’s prop-trading shop lost 8,000 Bitcoin
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Babel Finance, the Hong Kong-based crypto lender that froze withdrawals last month, incurred “massive” losses while using customer funds for its own proprietary trading, according to a restructuring plan seen by Bloomberg.
Babel’s proprietary trading desk was the firm’s “single point of failure,” having received an “uncapped” amount of capital from the company’s own wealth-management team, the document, dated July 13, shows.