Cryptocurrency lender Babel Finance is looking to work with Houlihan Lokey, an investment bank that works on restructuring and distressed mergers and acquisitions, according to two sources who spoke to CoinDesk.
Babel finance, which hit a $2 billion valuation after raising a series B round in May, has recently seen a wave of employee exits following a liquidity crunch, The Block reported earlier this week. The firm recently lost Yulong Liu, head of global partnerships, who planned to leave by the end of June or early July. Several others from the partnerships and public relations team also departed, according to LinkedIn profiles reviewed by The Block.
Last month, the crypto firm suspended withdrawals after experiencing "unusual" liquidity pressures.
“Babel is looking at restructuring. They’ve hired Houlihan Lokey or are in the process of hiring them. They’re in the process of signing an engagement letter,” one source told CoinDesk.
Babel will have some kind of outcome over the next couple of weeks, "whether it's sorting out and getting buy-in from creditors or declaring insolvency or default," the source added.
Babel Finance and Houlihan Lokey have been contacted for comment.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.