Troubled Lender Babel Finance Reportedly Hires US Investment Bank Houlihan Lokey

Reported engagement with the restructuring and merger and acquisition specialist follows liquidity issues at crypto lender Babel Finance

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • Babel Finance abruptly suspended withdrawals on June 17 due to “unusual liquidity pressures”
  • Houlihan Lokey focuses on mergers and acquisitions, capital markets, financial restructuring and valuation

Crypto lender Babel Finance is reportedly hiring US investment bank Houlihan Lokey a few weeks after suspending withdrawals amid liquidity issues.  

The company will be the next major crypto company “getting buy-in from creditors or declaring insolvency or default,” a person familiar with the matter told CoinDesk.

A spokesperson for Babel Finance declined to comment. Houlihan Lokey did not immediately return Blockworks’ request for comment. 

Babel Finance abruptly suspended withdrawals on June 17 — citing “unusual liquidity pressures” — similar to competitors Celsius, Finblox and CoinFLEX. The company said in a statement last week that it was looking to fulfill its legal responsibilities to customers by continuing “to avoid further transmission and diffusion of liquidity risks.” 

Houlihan Lokey focuses on mergers and acquisitions, capital markets, financial restructuring and valuation, according to its website.

Launched in 2018, Babel Finance provides institutions, high-net worth accredited investors and crypto miners with lending and trading services in bitcoin, ether and stablecoins.

The company raised $80 million at a $2 billion valuation in May. Main investors in the round included Jeneration Capital and 10T Holdings, as well as existing shareholders Dragonfly Capital and BAI Capital.

Blockworks confirmed this week a slew of firings and voluntary resignations from Babel. Yulong Liu, who served as head of partnerships at the company for nearly three years, and communications director Jacynth Wang are among those set to leave.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png

Research

Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.

article-image

Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121

article-image

Oklahoma’s new crypto bill will go into effect in November of this year

article-image

The deposits hit a $20 million cap in just 45 minutes

article-image

Twelve Democratic Senators voted in favor to pass the resolution Thursday

article-image

Pump.fun is “aware” that bonding curve contracts on Pump.fun were exploited, and has since paused trading

article-image

Some investment pros are mulling crypto allocations between 1% and 10% and seeking ex-BTC exposure for interested clients