Singapore Grants Babel, the Crypto Lender, Extended Protection for Creditors

Babel Finance, a cryptocurrency lending firm, has been granted an extension on creditor protection by a court in Singapore.

This will give the company an additional three months to repay debts to creditors such as Deribit, following the suspension of withdrawals in 2022.

The extension will last until July 21, during which time Babel will be able to continue its restructuring plan via a new decentralized finance project called Hope.

The Babel restructuring plan includes the issuance of new tokens, known as “Babel Recovery Coins,” which will enable the troubled lender to generate revenue for repaying as much as $800 million to its creditors. The tokens are designed to maintain a 1:1 peg with the US dollar through arbitrage incentives for traders.

Babel’s co-founder and former CEO, Flex Yang, returned to oversee the restructuring process and launched the Hope DeFi project in mid-March 2023.

The initiative combines DeFi and centralized finance to enable DeFi-level transparency and security and centralized finance-level access.

Yang has expressed confidence in the new team and their ability to move the new project forward, stating that Hope will be an important tool for Babel to reconnect the world during upcoming international political changes.

The court hearing for Babel’s bankruptcy protection was held on April 17, officially opening the in-court reorganization procedure.