Failed crypto firm Babel to officially start in-court restructuring

Babel co-founder Flex Yang / Photo credit: Babel

Babel Finance‘s Flex Yang, its co-founder and former CEO, said the company’s moratorium has been heard in Singapore court, officially starting its in-court restructuring process.

In a string of tweets, the exec also emphasized the role of Hope, Yang’s new stablecoin project that he hopes to use to pay back its creditors. Yang introduced the Hope project last year, planning to transition it from a stablecoin backed by Bitcoin and Ether to a fully reserved stablecoin bound to real-world assets.

Speaking to Bloomberg, Yang said the Singapore court extended the creditor protection for the company to last until July 21.

“We have confidence that the new team will continue to push the new project forward with our Hope and Light,” said Yang in a tweet.

Light is the governance token of a decentralized autonomous organization (DAO) that Yang proposed as part of the recovery plans for Babel. If approved, part of the fees from the trading of Hope will be funneled back into the DAO.

See also: Babel Finance creditors weigh unusual rescue plan: liquidate or accept Hope

In addition to Hope and Light, the company’s also looking to introduce “Babel Recovery Coins,” which it previously confirmed to Tech in Asia will be distributed to stakeholders and is a separate effort to Hope.