Babel Finance Loses 8,000 BTC and $280 Million of Customer Funds

Babel Finance, a crypto financial services firm, recently reported a whopping $280 million liquidation loss, which includes losing 8,000 BTC and a significant quantity of another token, according to a report from The Block. 

Once again, a reminder that users can never be fully assured that their Bitcoin is safe if they are leaning on a third party to custody their Bitcoin.

"In that volatile week of June when BTC fell precipitously from 30k to 20k, unhedged positions in [proprietary trading] accounts chalked up significant losses, directly leading to forced liquidation of multiple Trading Accounts and wiped out ~8,000 BTC and ~56,000 ETH," the deck reportedly reads.

Going forward the company is looking to convert $150 million of creditor debt into convertible bonds to raise up to $300 million through more convertible bonds, and receive $200 million in revolving credit. If all goes according to plan, the largest creditors of Babel will become shareholders.