"Value Out of Thin Air": Why Babel's Creditors Are Objecting to Restructuring

Singapore-based crypto lender Babel Finance is attempting to make amends with its creditors through the formation of a new recovery coin. However, the now-defunct firm's efforts are proving to antagonise creditors rather than reassure them.

Court filings of affidavits filed by Moonalpha (which essentially operates as Babel Finance) and creditor Deribit show that the latter is far from impressed by the former's finances, accounting, motivations and restructuring plan.

Background

Founded in 2018 by Hong Kong City University graduate Flex Yang, who worked for PwC Hong Kong before his entrepreneurial journey, and Del Wang, a graduate of China Agricultural University who spent several years working as a product manager at ICBC Bank before founding startups BowenPay and 0fenbei, Babel started out as a lender to crypto miners in China.