Babel Finance’s Creditor Protection Request Denied by Singapore Court

According to reports, Flex Yang, the co founder of Babel Finance, said that after the objection of creditor Deribit, the Singapore court refused to make a clearer decision on Babel Finance’s request to extend creditor protection. Flex Yang stated that the court granted an interim Moratorium until the next hearing date of Babel Finance’s creditor protection request on April 17.

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As the world of cryptocurrency continues to grow and evolve, so do the associated financial services that support it. Babel Finance, a China-based cryptocurrency financial services provider, recently found themselves in a legal battle over their creditor protection request in Singapore.

Background

Babel Finance is a well-known player in the cryptocurrency lending space, offering services that allow investors to earn interest on their digital assets. However, in March 2021, Babel Finance was hit with a demand for payment by their client Deribit, who claimed that the financial services provider had failed to deliver on a contract between the two parties.
In response, Babel Finance filed a creditor protection request with the Singapore court. They requested an extension of the creditor protection period, which would give them more time to figure out what to do next, but the court did not comply with their request.

The Court’s Decision

Flex Yang, the co-founder of Babel Finance, announced on April 11, 2021, that the Singapore court had denied their request for an extension of creditor protection. In addition, Yang revealed that the court had granted only an interim moratorium until April 17, which is when the next hearing is scheduled.
This decision by the court has significant implications for the cryptocurrency financial services sector, as it means that Babel Finance will have to address the creditor demand by Deribit in a timely manner. If they fail to do so, they could face more severe legal consequences down the line.

What Does This Mean for Cryptocurrency Investors?

Investors in the cryptocurrency space are likely to be closely watching the outcome of this legal battle between Babel Finance and Deribit. The eventual outcome could have a significant impact on how financial services providers in the sector operate moving forward.
At the moment, the terms of the interim moratorium which have been granted by the court remain unclear, leaving many investors in the dark about what to expect. However, what is clear is that the cryptocurrency sector is still in its infancy, and as such, it is likely that we will continue to see legal disputes like this arise until the sector becomes more regulated and transparent.

Conclusion

The denial of Babel Finance’s creditor protection request by the Singapore court is a significant development in the world of cryptocurrency financial services. As the sector continues to grow and face increased scrutiny, it is likely that we will see more legal battles like this arise.
Ultimately, the outcome of this particular dispute will have an impact on how investors choose to engage with financial services providers in the cryptocurrency space. It is clear that the sector needs more regulatory oversight to provide investors with certainty and transparency.

FAQs

1. What is Babel Finance?
Babel Finance is a China-based cryptocurrency financial services provider that offers lending services to investors.
2. What was the creditor demand from Deribit?
In March 2021, Deribit claimed that Babel Finance had failed to deliver on a contract between the two parties and demanded payment.
3. What did the Singapore court decide?
The court denied Babel Finance’s request for an extension of creditor protection and granted an interim moratorium until April 17.