Babel Finance Lost over $280M in Proprietary Trading, Seeking to Convert Debt into Equity

According to The Block, Babel Finance's restructuring proposal shows that the company lost 8,000 $BTC and 56,000 $ETH in proprietary trading with customer funds, which was worth over $280m. Due to the massive losses, Babel's lending and trading departments were unable to meet margin calls from counterparties. Currently, Babel is seeking to convert hundreds of millions of dollars of debt into equity and raise more funds in a revolving credit facility. It hopes to convert $150m of the biggest creditors' debt to convertible bonds, raise $250m to $300m in convertible bonds and then secure a revolving credit of $200m from creditors for business restoration.