Babel Finance
Collapsed crypto lender in Hong Kong, now a defunct shell under Singapore court restructuring.
On the record
Checkpoint: Singapore High Court ruling on the Babel Holding Ltd scheme of arrangement (approve, reject, or liquidate)
The call
Babel Finance is not a business fighting rivals, it is a $2B name attached to an empty shell working through creditor claims in Singapore court.
Babel Finance lent cryptocurrency and took deposits from customers but collapsed in June 2022 after losing $525 million to $800 million when the Terra blockchain and a major trading firm called Three Arrows Capital failed. The company has no product, no revenue, and almost no employees left. The only question now is whether a Singapore court will approve a plan to repay creditors using a new token called HOPE; if the court rejects it (as a similar Hong Kong court recently did with another crypto company), Babel will likely be forced into full liquidation instead, leaving creditors with even less.
Why
01
AI pressure: None apparent. There is no operating business left for AI to disrupt or assist; Babel has zero product and zero revenue. Could AI do the core job? Yes, likely.
02
Bigger players: None apparent. No competitor needs to take share from a company that stopped lending and froze withdrawals in June 2022. Could a giant copy it? Yes, easily.
03
What protects it. None. A single director winds down the estate under a Singapore court moratorium with no product or cash flow.
What would change this call
Singapore High Court issues a ruling on the In re Babel Holding Ltd scheme of arrangement. Would clarify whether Babel heads toward liquidation, a token scheme, or continued limbo.
HOPE or Light Token scheme is formally approved and launched to creditors. Would show a functioning creditor-recovery vehicle exists, not a growth business.
Singapore court orders liquidation of Babel Holding Ltd. Would confirm equity is wiped out and recovery is limited to creditor claims.
HOPE or Light Token scheme is formally approved and launched to creditors. Would show a functioning creditor-recovery vehicle exists, not a growth business.
Singapore court orders liquidation of Babel Holding Ltd. Would confirm equity is wiped out and recovery is limited to creditor claims.
Key numbers
- $80M Series B at $2B valuation
- Losses of roughly $525M to $800M from Terra/Luna and 3AC exposure
- Withdrawals frozen after internal admission of insolvency
Named risks
- Insolvency since June 2022 with no going-concern business or revenue.
- Singapore scheme of arrangement remains unresolved as of March 2025, with creditor objections ongoing.
- Hong Kong court precedent shows willingness to refuse crypto restructuring schemes even after creditor approval.
- Headcount and operational capacity reduced to a single director managing wind-down.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Galaxy Digital | losing to | Surviving institutional crypto lenders absorbed Babel's client base after its June 2022 collapse |
| BlockFi | contesting | Named peer by CB Insights as of May 2022; BlockFi also collapsed into bankruptcy in 2022 |
| Amber Group | losing to | Named as direct peer competitor by CB Insights as of May 2022, remained operating while Babel froze |
| Celsius Network | contesting | Both firms collapsed in the same Terra/Luna and 3AC contagion wave of June 2022 |
Questions people ask
- Is Babel Finance still operating in 2026?
- No. Babel Finance froze withdrawals on 17 June 2022 and told partners it was already insolvent that same day. It has been in Singapore court-supervised restructuring since, with a moratorium extension granted 7 March 2025 and no product, revenue, or resolution found since.
- Who owns Babel Finance now?
- Babel Finance was privately backed by investors including Dragonfly Capital, Sequoia Capital China, and Tiger Global at an $80M Series B in May 2022 valuing it at $2B. Since its June 2022 collapse it operates only as a Singapore court restructuring estate under sole director Yang Zhou.
- Did Babel Finance ever recover from its 2022 collapse?
- No confirmed recovery has occurred. Its proposed HOPE/Light Token creditor-repayment scheme, floated in March 2023, drew creditor objections including from Deribit by June 2023, and as of the March 2025 court moratorium extension the restructuring remained unresolved.
- How much money did Babel Finance lose in 2022?
- Babel Finance disclosed losses of roughly 766 million dollars in one account, with other filings and press coverage citing a range of 525 million to 800 million dollars, tied to the Terra/Luna and Three Arrows Capital contagion that hit in June 2022.
- Could AI replace Babel Finance's lending business?
- The question is moot. Babel Finance's collateralized lending, options-structuring, and risk-management workflows ceased operating after its June 2022 insolvency, and no active business or team remains for AI to replace or augment as of the March 2025 court filing.
- Who are Babel Finance's biggest competitors?
- CB Insights identified BlockFi, Amber Group, Grayscale, and Wave Financial as peers as of May 2022. Comparable institutional lenders Celsius Network, Voyager Digital, and BlockFi also collapsed in the same 2022 crypto contagion wave that took down Babel.
Timeline
- 2025-03-07Singapore court extends Babel's worldwide moratorium, allows creditor-name anonymization
- 2023-06-15Creditors including Deribit object to Babel's HOPE token restructuring plan
- 2023-03-06Babel proposes HOPE stablecoin and Light Token scheme to repay creditors
- 2022-06-29Headcount falls to about 44 as executives depart amid liquidity crunch
- 2022-06-17Babel freezes withdrawals citing liquidity pressures, tells partners it is insolvent
- 2022-05-26Babel closes 80 million dollar Series B at 2 billion dollar valuation
- 2021-05Babel closes 40 million dollar Series A
- 2018Babel Finance founded by Flex Yang and Del Wang in Hong Kong
Revision history
29 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Why Babel's Creditors Are Objecting to Restructuring (2023-06-15)
- Babel Finance closes US$80 million Series B fundraising round at US$2 billion valuation (2022-05-26)
- Crypto Lending Platform Babel Finance Pauses Withdrawals (2022-06-17)
- Babel's Yang Zhou recalls the 2022 crash (2025-03-09)
- Troubled Crypto Lender Babel Finance Eyes Restructuring (2023-10-23)
- Babel Finance Suffers Executive Exits Amid Liquidity Crunch (2022-06-29)
- CBInsights: Babel Finance
- Babel Finance Mulls New Token Launch to Repay Creditors (2023-03-06)
- Global Restructuring Review (2025-03-20)
- Crypto asset management firm Babel Finance rises to $2B valuation (2022-05-25)
- Court Grants Extension of Moratoria and Sealing of Documents (2023)
- Babel Finance, API Provider, Schemas