Babel Finance Lost $280M in Bitcoin & Ethereum: What Happened in June 2022?
Was 2025 a brutal year for digital assets? It was a period of significant turbulence, but the roots of some crypto firm troubles can be traced back further. A key event highlighting this volatility was the June 2022 incident involving Babel Finance.
Babel Finance, the troubled cryptocurrency exchange, has reportedly lost more than $280M worth of Bitcoin (BTC-USD) and Ethereum (ETH-USD) in proprietary trades, triggering widespread concern within the crypto community. The firm has taken heavy losses in its Bitcoin (BTC) and Ethereum (ETH). But what exactly led to this massive loss?
Babel Finance Halts Withdrawals Amid Liquidity Crisis
The situation unfolded rapidly. Babel Finance halted investor withdrawals on the 17th of June due to “unusual liquidity pressures.” This announcement immediately raised red flags and fueled speculation about the firm\'s financial stability. The cryptocurrency market has lost over $600 billion in value during the first week of May 2025; Bitcoin and Ethereum, the two largest cryptos, fell 24% and 31%, respectively, in value in April, potentially foreshadowing the pressures on firms like Babel.
$280 Million Gone: Understanding the Babel Finance Loss
It has been revealed that Babel lost more than $280 million in Bitcoin and Ethereum in the June 2022 period. The exact nature of the "proprietary trades" that led to these losses remains a subject of debate, but market conditions at the time certainly played a role. Bitcoin plunged 64% as interest rate hikes made investors think twice about digital assets, creating a challenging environment for crypto firms.
The Future of Babel Finance
No matter how bad things seem, Babel Finance is planning to get out of it. The firm is likely exploring various options to recover from this significant financial setback and restore investor confidence. The future remains uncertain, but the lessons learned from the Babel Finance incident serve as a stark reminder of the risks associated with cryptocurrency investments and the importance of robust risk management strategies for crypto firms.
This incident highlights the inherent volatility in the crypto market and the potential for significant losses, even for established players like Babel Finance. Stay informed and exercise caution when investing in digital assets.