Reported Bloomberg, Babel Finance, a troubled crypto lender, has proposed a new crypto project called the "Babel Recovery Coin", and claims to repay creditors using revenue generated from this new project after suffering a loss of $766 million due to trading desk activities.
The company plans to file for a moratorium of protection with the high court of Singapore and seek creditor approval for a restructuring plan centered on the Babel Recovery Coin.
Babel Finance founder Yang Zhou has been building a new decentralized stablecoin project called "HOPE" since his exit in 2021. The project uses bitcoin and ethereum as collateral. Yang Zhou, the founder of Babel, plans to set up the project with some former employees in Hong Kong.
The company alleges co-founder Wang Li was responsible for the losses and has removed him from leadership. Babel estimates that $524 million worth of cryptocurrencies owned by the company and its customers were lost due to Wang's trading activities. Another $224 million was also lost when Babel counterparties liquidated collateral after it was unable to meet a large volume of margin calls.
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