Ordinal Inscriptions Take the NFT World by Storm: Over 50,000 Added to the Bitcoin Blockchain in 2023

February 11, 2023 Bitcoin.com

Court sets new deadline for Celsius restructuring plan

December 6, 2022 Coin Telegraph

Celsius halted withdrawals on the platform on Jun. 13 and filed for bankruptcy a month later on Jul. 14.

Bankrupt crypto lender Celsius was granted an extension on its exclusivity period until Feb. 15, 2023. The court approval would give the troubled crypto lender another couple of months to file for a Chapter 11 restructuring plan.

The approval to extend the exclusivity period came after two court hearings on Dec. 6. Celsius, in an official tweet, said that they requested approval to permit the sale of stablecoin, aimed at providing liquidity for continued operations The Judge has indicated that he will share his decision soon, likely next week.

Celsius hopes to use the extension period to develop a plan for a stand-alone business and said:

“We explore all value-maximizing opportunities available to us for the benefit of our customers and other stakeholders.”

Celsius filed for an extension of the exclusivity period on Nov. 10 with hopes of making substantial progress. Reorganization is a process of implementing a business plan to alter a corporation's structure or finances because of financial duress under government supervision.

Celsius today filed a motion requesting approval to extend the Exclusivity Periods in our cases. This is the period when Celsius has the exclusive right to submit a plan of reorganization.
— Celsius (@CelsiusNetwork) November 10, 2022

The bankrupt crypto lender halted withdrawals on June 13, citing extreme market conditions and filed for bankruptcy a month later on July 13.

Celsius has appointed a new director to guide it through the restructuring process, including David Barse, a “pioneer” in distressed investing who is the founder and CEO of index company XOUT Capital.

The crypto lending firm showed a balance gap of $1.2 billion in its bankruptcy filing, but the actual gap turned out to be more than $2.85 billion. User deposits made up the majority of liabilities at $4.72 billion, while Celsius’ assets include CEL tokens valued at $600 million, mining assets worth $720 million and $1.75 billion in other crypto assets.

Crypto lending platform Babel Finance reaches counterparty debt agreement

June 21, 2022 Coin Telegraph

Babel Finance

The firm emphasized that it will “actively fulfill its legal responsibilities to customers and strive to avoid further transmission and diffusion of liquidity risks.”

Hong Kong-based crypto lending firm Babel Finance has eased some of its immediate liquidity troubles by reaching debt repayments agreements with some of its counterparties.

As previously reported, the firm issued a temporary suspension of redemptions and withdrawals from its products on Friday after citing “unusual liquidity pressures” in the current bear market. The company stated it was taking swift action to protect clients and communicate with “all related parties.”

In an update posted on Monday, Babel Finance stated that it has since taken three steps to help ease its current liquidity situation. These include carrying out an emergency assessment of the firm’s business operations, communicating with shareholders/investors and reaching “preliminary agreements” for some debt repayments.

The company didn’t specify specific details about the debt repayment plans, such as interest rates or maturation date but did note that:

”We have communicated with major counterparties and relevant customers and reached preliminary agreements on the repayment period of some debts, which has eased the company’s short-term liquidity pressure.”

The firm also stated that it communicated with certain shareholders and investors about the potential to obtain liquidity support and will “actively fulfill its legal responsibilities to customers and strive to avoid further transmission and diffusion of liquidity risks.”

“We thank our customers for their understanding and support during this period and hope to obtain further support from our partners,” the firm stated.

The firm’s liquidity issues come just a month after it raised $80 million in a Series B funding round at a valuation of $2 billion. The year prior, the firm also raised $40 million in a Series A funding round led by Zoo Capital, Sequoia Capital China, Dragonfly Capital and Tiger Global Management.

Babel Finance offers financial exposure to Bitcoin (BTC), Ether (ETH) and stablecoins to a “select clientele of about 500 customers,” according to the firm.

The company joins a host of crypto firms undergoing liquidity troubles in the current bear market, including Three Arrows Capital, Celsius, and Finblox, to name a few, with the latter two also moving to pause withdrawals .

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