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Investigation: Babel Finance, China's largest crypto lending company, almost lost its all funds and customers at March 12th, because of a shortfall. But Tether extended the replenishment time from 48 hours to 1 month. Babel owed Tether 5000 btc at the time, but only had 200
Babel advertised a 300 million loan, but the actual 200 million was borrowed by itself. The core of Babel's business is to absorb funds at a low cost, including the users' collateral to borrow in series, to obtain more btc, and then to bet on rising btc prices to obtain profits.
After 312, Babel was questioned on the overseas funding side. BlockFi and OSL have interrupted their cooperation, and Tether has also interrupted. Recently, it has resumed. The partner that continues to support Babel is Genesis. Previously, BlockFi gave a pledge ratio of 1:1.
There is a explanation for Babel that during 312, in order to protect customers from liquidation, Babel defaulted on the funder and suffered pressure from the funder. At the same time, due to the downtime of Deribit, the option could not be sold and owe them a lot of BTC.
But there is evidence that during Babel's 312 period, customers liquidated their positions and collected more than 3/4000 bitcoins.
Babel has blocked its fate on Tether. It believed that Tether will give it time, and Tether can print money indefinitely. Tether did not respond to Wu's consultation, suspected to be worried about its behavior will bring legal risks and other borrowers will also request extension
Babel investors include Dragonfly, Parallel, NGC, etc. Babel's core customers or partners include f2pool, NGC, Nervos, Dforce, Hash Times, BigOne, KuCoin, etc. Babel's start was highly tied to the poolin, but the subsequent cooperation was suspended. Poolin did its own business
