Babel pitches ‘Recovery Coin’ to repay creditors after $766 million loss

03/06 01:04

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. The plan detailed in the filing 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. Babel estimates $524 million worth of Bitcoin, Ether and other tokens owned by the company and its customers was lost as a result of 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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