One of Asia’s largest crypto lenders, Babel Finance has engaged the law firm Kirkland & Ellis for restructuring advice, Bloomberg reports citing its own sources.
Co-founder Flex Yang, who had stepped back from the business last year, has returned to oversee the process at Babel’s Hong Kong–based operation.
To assist, Kirkland & Ellis is also being used by the crisis-hit lending platform Celsius Network and broker Voyager Digital. The law firm, with around 2,600 professionals, is regarded as a leader in asset recovery within its sector.
Earlier, Babel turned to Hulihan Lokey to explore restructuring options.
Earlier in June, the company announced the suspension of payments and withdrawals from its own products due to liquidity shortages.
Later, Babel representatives refuted insolvency reports and said the firm had reached “preliminary agreements” to pay part of its debts.
In May, the firm closed a Series B financing round of $80 million at a $2 billion valuation.
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