Crypto financial services provider Babel Finance plans to issue a stablecoin to pay off debts to creditors. He writes about this Bloomberg.
Co-founder Yang Zhou introduced the DeFi project Babel Recovery Coins as part of the restructuring plan, according to the publication. It allegedly provides for two assets – the HOPE stablecoin and the Light Token token.
The first is 50% backed by Bitcoin and Ethereum and should reach parity with the dollar through arbitrage deals.
According to Bloomberg, the company plans to file a moratorium on creditor protection with the Singapore High Court, asking it to withhold further action for up to six months.
In May 2022, Babel Finance raised $80 million at a $2 billion valuation.
A month later, the company suspended withdrawals from its own products due to lack of liquidity.
Later representatives of Babel Finance denied reports of insolvency and talked about the achievement of “preliminary agreements” on the payment of part of the debts.
Recall that in July it became known that the crypto lender lost $280 million on trading client funds.
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