Singapore court dismisses US$5m claim against Babel Finance co-founder

Singapore's High Court dismissed a US$5 million claim by investor Parastate Labs against Babel Finance co-founder Wang Li over losses from the cryptocurrency firm's 2022 collapse. The court found Wang did not dishonestly assist in any breach of duty. Justice Sushil Nair ruled on Sept 1 that Parastate's investment was not held on trust and that Babel owed no fiduciary duties to the investor. Evidence showed Wang attempted to prevent Deribit exchange from liquidating Babel's accounts, which were wiped out amid a US$400 million group shortfall. Parastate, a US-incorporated investor, had placed five million USDT into a Babel fund in March 2022. The judge rejected claims of misleading statements, noting Parastate was a sophisticated investor with legal advice, and dismissed the claim entirely.