Days after the collapse of crypto hedge fund Three Arrows Capital, Hong Kong-based crypto platform Hoo.com has banned withdrawals, as have other cryptocurrency platforms in Hong Kong.
Hoo.com, a cryptocurrency trading website, said on Twitter on Sunday that it will be suspending withdrawals for 72 hours, with the goal of processing a huge number of users.
Withdrawals have been frozen by a growing number of large lenders in recent weeks, with Hong Kong-based Babel Finance suspending withdrawals on Friday, citing exceptional liquidity concerns in their announcement. This news comes less than a month after Babel Finance announced an $80 million funding round.
Recently, the crypto market has undergone significant volatility, and certain sector institutions have encountered conductive risk incidents. Babel Finance is experiencing unusual liquidity pressures as a result of the current scenario. We’re in constant contact with all relevant parties on the steps we’re doing to best protect our customers, according to the announcement.
Furthermore, Finblox, a Hong Kong-based staking and yield generation company, announced a variety of measures, including a $1,500 monthly withdrawal cap.
Celsius, a cryptocurrency lender, also halted withdrawals on June 12th, as the company looked into ways to stay afloat, including consulting with investors. As a result, the company went through a financial restructuring to stabilize liquidity and operations while taking steps to preserve and protect assets.
Investors have been under pressure and uncertainty as Bitcoin fell below $20,000 on Saturday, part of a larger crypto selloff. While Bitcoin rose beyond $20,000 on Sunday, the recent actions of a number of exchanges have created confusion in the market.