Babel Finance, the Hong Kong-based crypto lender, apparently had other designs when its worldwide user base handed over their crypto to the company than just borrowing and lending. It seems to have been doing what everyone else does with crypto, rapidly speculating and trying to make “line go up.” Of course, all that changed when the line no longer went up.
The Block reported based on restructuring proposal documents that Babel Finance had lost 8,000 bitcoin and 56,000 ether in June, worth close to $280 million, though of course the price is constantly fluctuating. The company had apparently been conducting proprietary trading with customers’ funds. It remains unclear based on reporting if users were/are aware their crypto was/is being used in this way.