Babel Finance gambled away $280M in client funds

Babel is now trying to raise hundreds of millions of dollars in debt and equity investments as part of its rescue plan. The news platform “The Block” obtained the restructuring proposal and first reported on Babel’s proprietary trading with client funds:

First, it seeks to convert $150 million of the biggest creditors’ debt to convertible bonds, per the deck. Additionally, it looks to raise $250 million to $300 million in convertible bonds and then secure a revolving credit of $200 million from creditors “for business restoration.” The plan, if successful, would turn Babel’s largest creditors into shareholders.

To date, Babel Finance has not issued a public statement or responded to enquiries from news platforms.