Babylon Finance Announces Shut Down Due to Previous Hack

Young Canadian Crypto Trader Being Sued For Defrauding
  • Total value locked (TVL) in the protocol drops from $30M to $4M after the attack.
  • The team plans to give away all of its remaining treasury assets.

When it comes to asset management firms, Babylon Finance is the most recent to shut down, but for an unusual reason. Recently, the asset management platform declared its intention to shut down, citing a past catastrophic incident. 

Late on Wednesday, co-founder of Babylon Finance Ramon Recuero made the announcement on Twitter. The Babylon Finance team claims that the asset management protocol will be officially disabled in this year November.

Investors Lost Confidence

The ongoing crypto bear market, he said, has not helped matters for the platform. Recuero continued by elaborating on the disastrous implications of the hack on Babylon Finance.

Total value locked (TVL) in the protocol drops from $30M to $4M as a result. Part of the impact is that people have stopped using Fuse, Babylon Finance’s lending product and that the value of BABL, the company’s native token, has dropped since the attack. Recuero claims that these events caused widespread pessimism across the ecosystem.

The team plans to give away all of its remaining treasury assets to BABL and hBABL investors. On September 6th, distribution will officially commence. Additionally, tokens purchased by investors will be reimbursed to them. The group also plans to withdraw all available funds from Uniswap.

Also, the firm has provided all investors with a November 15 deadline for finalizing their plans. The article states that the website and Discord server for Babylon Finance will be taken down on that day. Over $80 million was stolen in the Rari Capital attack on April 20. There were various assets on Rari Capital valued at up to $30M that belonged to Babylon Finance, which was a big problem.

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.