Crypto lender Babel gets extended creditor protection in Singapore

Troubled cryptocurrency lending firm Babel Finance has more time to repay debts to creditors like Deribit after suspending withdrawals in 2022.

A court in Singapore has extended creditor protection for Babel Finance by another three months, Bloomberg

Another Babel co-founder, Yang Zhou, initially introduced the Hope project in early March, describing its native Babel Recovery Coin as a stablecoin minted as collateral based on Bitcoin (BTC) and Ether (ETH). The token is designed to maintain its 1:1 peg with the U.S. dollar through arbitrage incentives for traders.

Babel was one of many crypto lending companies that experienced major liquidity issues due to the bear crypto market in 2022. The Hong Kong-based firm suspended withdrawals and redemptions from its products in June, citing unusual liquidity pressures. Babel reportedly lost $280 million in proprietary trades with customer funds.

Magazine: Asia Express: Bitcoin glory on Chinese TikTok, 30M mainland users, Justin Sun saga