Babel Financial, one of many cryptocurrency credit companies hit by the bear market in 2022, is looking for new restructuring opportunities, including producing a new dynamic password.

Yang Zhouzheng, founder of the Tower of Babel, plans to build a new blockchain technology equity financing (Defi) project to generate income and repay debts to creditors, Bloomberg News reported on March 5.

According to Yang's restructuring plan, this hidden new Defi project, called Hope, aims to forge a new stable currency as a "recycling coin" for the Tower of Babel.

The filing stresses that, unlike important smooth loan currencies such as Tether (USDT) and US dollar coins (USDC), Hope's stable loan currency of the same name will use BTC (BTC) and ETH as collateral and will be encouraged to maintain its 1:1 ratio to the US dollar based on hedging arbitrage against traders.

The document also claimed that Zhensheng, another founder of the Tower of Babel, was responsible for the damage and demanded that "high-risk transactions may have been directed by Wanda Wang Jianlin." In December last year, Wanda Wang Jianlin resigned from his position as CEO of Babel Tower because of company problems.

Based on Babel's likelihood, the company owes customers $524 million worth of BTC, ETH and other cryptocurrencies because of losses from Wang's riskier trading practices. It is reported that after Babel failed to meet many of the maintenance margin conditions, the trading partner settled the collateral, causing another $224 million damage.

As previously reported, Babel is one of several login password borrowers who have experienced serious liquidity problems because of the cryptocurrency winter of 2022. The Hong Kong-based company stopped withdrawing and redeeming new products in June because of "abnormal liquidity work pressure".

Several well-known sector lenders, including Voyager Digital, Celsius Network, Genesis Global and Hodlnaut, are facing the same problem. According to a January filing under Chapter 11 of the Company Law, Genesis owes Babel, its third-largest naming and criticism creditor, $150 million. All of these companies have now been working on restructuring plans to repay creditors' debts and save their companies.

At the end of February, Voyager's user network vote was subject to a restructuring plan, which mainly included Binance's US business process, Binance.US, to reclaim Voyager's property.