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.
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.
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 said.
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.