DeFi
Deribit, the biggest Bitcoin and Ether options exchange, has requested the appointment of Alvarez & Marsal as an impartial counsel to oversee the restructuring strategy. An email sent outside of work hours did not immediately receive a response from Deribit.
The ongoing moratorium of protection against creditor action for Hong Kong-based Babel Finance, which also has operations in Singapore, expires on April 5, according to Flex, who left day-to-day management in late 2021 and has since returned to oversee the company’s restructuring. Babel owes debt between $750 million and $800 million. It was one of a number of cryptocurrency businesses that encountered difficulties after the crash in digital assets last year.
A new stablecoin is a part of the restructuring strategy suggested by Babel. The strategy calls for paying back finance’ obligations with money earned from a brand-new project that issues “Babel Recovery Coins.”
Babel Finance’s reorganization plan includes a plan to pay off debts using proceeds from a decentralized stablecoin project called “Hope,” according to sources from Bloomberg. Hope will use BTC and ETH as collateral and pegged the price to USD, similar to the infamous DAI method (collateralized with USDC, ETH) or the UST method (collateralized with LUNA). The difference between Hope and Terra’s stablecoins is that the collateral is not set up by the same business that created LUNA-UST.
The court agreed to a temporary suspension until Babel’s creditor protection petition is heard again on April 17, according to Flex.
Babel Finance, a cryptocurrency lender funds by Sequoia Capital China, incurred losses while using customer cash for its own proprietary trading, leading the lender to halt withdrawals in June 2022 as the value of digital tokens plummeted.
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Sourced from cryptonews.net.
