04-18-2023 icon

Digital Currency Lender Babel Gets Extended Creditor Protection in Singapore 

By Lucy Adegbe
Babel Finance

Distressed digital currency loan company Babel Finance has an extended time frame to settle its debts to lenders such as Deribit following its move to halt withdrawal transactions last year. 

A law court in the Singapore region has pushed forward lender protection for Babel Finance by an extra 90 days period, Bloomberg published in the early hours of April 18th.

As stated by the loan company’s co-owner and preceding chair Flex Yang, the extension periods will end on July 21st, allowing the company to chase its reorganization strategy through a recent decentralized finance project known as Hope. Yang had come back to manage Babel’s reorganization plans years after his resignation as the company’s chair in 2021.

The loan company’s reorganization strategy covers a recent token tagged the “Babel Recovery Coin,” which is targeted at letting the distressed creditor realize funds to settle up to $800 million of debts to its lenders. 

Yang also communicated in an open memo on the Twitter platform that the loan company’s insolvency protection hearing took place in the Singapore State Supreme Court on Monday, formally unlocking the in-court restructuring steps. Major attention, in the future, will be placed on the Hope project,  he added. 

As formerly published, Flex Yang introduced the Hope Defi project on the 15th of March, 2023. He highlighted the project as a merger of both decentralized and centralized finance that will allow for top-notch Defi-grade clarity and security as well as centralized-grade accessibility.