In response to the recent accusations

Since our founding two years ago, Babel Finance has been commited to the concept of creating value for its customers. We come from a traditional financial background from the world’s leading institutions and have since been using this knowledge to provide outstanding services to investors in crypto finance. Our dream is to transform the crypto financial infrastructure and contribute to the needed maturation of the crypto industry for this industry to be taken even more seriously by institutions in Asia. For the two years that we’ve been operating, our customers have trusted us in our processes as we’ve been transparent and reliable partners. In fact, suffice to say we have not conducted a single breach with our users and partners as our mission is to always have our clients’ best interest in mind.

One of the key values that we pride ourselves on is our resilience and commitment to our clients. In both traditional and crypto markets, volatility is to be expected. The world has seen this in 2008. And the crypto industry had also experienced this on March 12, 2020. But the institutions that continue to stand even in the hardest of times are the ones that have a strong resolve to overcome, learn and improve.

On March 12, the global financial system faced the liquidity crisis and was coined a black swan moment that saw 60% plunge in the digital currency market within 12 hours. It was a stress test for everyone in the crypto ecosystem and a moment that in hindsight had seen back actors in crypto disappear overnight. Based on our experience at the world’s largest institutions and banks, we had processes in place. Despite the extreme market conditions, we did not end up defaulting on any institutional borrowers or customers.

We had a risk control system built and tested by our team vigorously, and Babel Finance’s attention to placing risk protection measures from the start of the company was critical to keeping our clients safe from the crash. Our approach included the purchase of a large number of options and we worked closely with our partners to deal with the market challenges at the time.

Despite the events that perspired on March 12, our relationships with our partners couldn’t be stronger. In fact with these events, we’ve earned more trust and more support from our partners, knowing that they can rely on an institution that is able to weather the worst of the storms. And we’re proud to say that as a result, our business and partnerships have increased.

It’s important to note that despite our success, we haven’t overlooked ways we can improve our processes even further and truly fufill our commitments to our customers. We reflected on the March 12 incident internally, and strengthened our internal risk controls further. We sought to prevent extreme long-tail risks, and invested heavily in security, transparency, and compliance measures.

More specifically some of these new processes include:

1) Completion of custody agreements with Coinbase Custody, Cobo Custody, Onchain Custody, and currently in the process of onboarding Fidelity Custody.

2) Babel Finance hired an internal compliance officer with more than 7 years of experience in the financial industry to make major improvements to our compliance and internal control systems.

3) Employed external law firms including Simons & Simons and Harneys to carry out overseas compliance applications.

4) Cooperated with a global top ten audit service provider in an aim for us to establish standards for transparency in the financial system and promote the development of this industry.

While there have been rumors circulating as a result of anonymous published audio files, which appear to be fragmented and heavily edited, we can’t verify the authenticity of the files. We however believe the facts and the trust that our partners have in us, before and after March 12, is evidence to the confidence that our clients have in Babel Finance, knowing that we truly put our client’s best interest in mind.