{
  "id": 5244136,
  "title": "High Court rejects US$5m claim against Babel Finance co-founder over crypto fund collapse",
  "url": "https://urgent.news/2026/09/03/high-court-rejects-us-5m-claim-against-babel-finance-co-founder-over",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-03T04:00:00.000Z",
  "source": {
    "name": "Straits Times Business",
    "slug": "straits-times-business",
    "url": "https://www.straitstimes.com/business/high-court-rejects-us5m-claim-against-babel-finance-co-founder-over-crypto-fund-collapse"
  },
  "original_language": "en",
  "account": "A cryptocurrency investor seeking US$5 million from Babel Finance co-founder Wang Li lost his case in the High Court, with the court rejecting claims of dishonest assistance in a breach of duty. Wang was responsible for Babel Finance's trading strategies and did not help prevent the liquidation of the company's accounts in 2022. After Babel's insolvency, Parastate Labs, a U.S.-based cryptocurrency investor, lost its five million USDT investment, which was locked for three months. In June 2022, Deribit, a cryptocurrency derivatives exchange, demanded Babel deposit more Bitcoin and Ether to cover a liquidity shortfall. Babel deposited 200 Bitcoin but was still liquidated less than an hour later, wiping out about US$12.5 million in investments. Wang tried to negotiate with Deribit to return control of Babel's accounts, but Deribit consolidated them and liquidated the trading positions, resulting in a deficit for Babel's customers. The court ruled that Wang did not breach fiduciary duties or act dishonestly, as Parastate was a seasoned investor with legal counsel and understood the risks involved.",
  "summary": "Parastate Labs' investment was wiped out during a mass liquidation of Babel's trading accounts in 2022",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}