A top executive at Babel Finance is betting a new stablecoin can resolve the troubled crypto lender’s financial crisis, which came to a head last year when it froze withdrawals, Bloomberg News reported. Co-founder Yang Zhou, now sole director of Babel, has filed a moratorium of protection to the high court of Singapore on Monday, asking creditors not to take further action against the company for up to six months as it seeks their approval on a restructuring plan. The plan proposes repaying debts owed to creditors with revenue generated by a new decentralized finance project minting so-called “Babel Recovery Coins,” according to a document viewed by Bloomberg News ahead of the filing. Babel hit trouble last year during the crypto market’s meltdown after the company’s proprietary trading desk ran up an order-book deficit of $766 million using customer funds. The filing alleges co-founder Wang Li — who was removed from the company’s leadership in December — was responsible for the losses, contending that “the risky trading activities appear to have been instructed solely by Wang.”
