A Singapore court extended creditor protection for crypto lender Babel Finance by about three months, its co-founder Flex Yang said.
(Bloomberg) — A Singapore court extended creditor protection for crypto lender Babel Finance by about three months, its co-founder Flex Yang said.
The moratorium will now last until July 21, Flex said. He returned to oversee Babel’s restructuring after stepping down from day-to-day operations in 2021.
Hong Kong-based Babel, which also operates in Singapore, hit trouble during last year’s crypto meltdown and owes as much as $800 million to creditors.
The company had sought a longer period of creditor protection to pursue a proposed restructuring that would repay debt with revenue generated by a new decentralized finance project minting so-called “Babel Recovery Coins.”
Deribit, the largest Bitcoin and Ether options exchange and a Babel creditor, had raised objections to the restructuring plan. Deribit had asked for Alvarez & Marsal to be appointed as an independent adviser to monitor the plan.
Babel ran up big losses while using customer funds for proprietary trading, forcing the crypto lender to freeze withdrawals in June 2022. It reached a $2 billion valuation in a funding round last year but then became one of a number of digital-asset outfits that hit the buffers as cryptocoins crashed.
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