TechFlow news, according to Bloomberg citing court documents, cryptocurrency financial services provider Babel Finance has proposed repaying $766 million in creditor debt using revenue generated from minting "Babel Recovery Coins." Meanwhile, Yang Zhou, Babel's sole director, is planning to file for a moratorium protection order with the Singapore High Court, requesting that creditors refrain from taking further action against the company for up to six months while it seeks approval for restructuring.
Yang plans to launch a DeFi project called "Hope" together with several former Hong Kong employees of Babel, which will serve as the restructuring hub and issue the so-called "Babel Recovery Coins." Hope’s namesake stablecoin will initially be backed by Bitcoin and Ethereum, and maintain its price peg to $1 through arbitrage incentives offered to traders.
Last year, Babel’s proprietary trading division incurred a deficit of $766 million using client funds. According to Babel’s estimates, $524 million worth of Bitcoin, Ethereum, and other tokens owned by the firm and its clients were lost due to trading activities by co-founder Wang Li. Additionally, counterparties liquidated collateral after Babel failed to meet large margin calls, resulting in another $224 million in losses.Original article link
