Echo Base Launches EBRx Advisory Unit for Digital Asset Restructuring

Echo Base, a privately funded special situations platform focused on acquiring, financing and advising companies in digital asset markets, has announced the creation of Echo Base Restructuring, or EBRx, a new division dedicated to restructuring and crisis advisory. EBRx collaborates with founders, principals, major shareholders and boards both before and after a disruptive event, when early decisions—often made with limited information—shape the possible outcomes.

The advisory unit addresses a range of issues including liquidity shortfalls, funding gaps, covenant and maturity problems, failed financings, counterparty defaults, suspended withdrawals, frozen or seized assets, regulatory and enforcement action, license loss, forced jurisdictional exit, litigation, control contests, deadlock, founder separations and shareholder disputes. Echo Base steps in when a viable operating core has been affected by an event, dispute or financial issue, rather than when the underlying economics or business model were never viable.

A restructuring process compresses decisions that would usually span a year into just a few weeks. Most of those choices are irreversible, and they are made before the company fully understands the situation. Despite a decade of insolvencies, shutdowns and enforcement actions, the digital asset sector lacks the professional infrastructure that supports distressed situations in other markets. Operators often face their first crisis without anyone involved who has experience navigating such a scenario.

Echo Base has managed contentious negotiations across multiple jurisdictions, alongside concurrent litigation, and through capital structures where each group of claimants recovers differently and is aware of that fact. These situations are sensitive: a lender that needs to delay, a creditor group that has organized, an exchange or counterparty holding the company's assets, or a shareholder whose consent is required for financing. When a dispute or broken relationship makes direct communication difficult, Echo Base acts on behalf of the company.

Typically, Echo Base serves as the lead advisor to the chief executive or the board—often referred to as the chief restructuring advisor—for the duration of a situation. It sets strategy, sequences decisions and leads discussions on distressed M&A and financing while management continues operating the business. The role can be external, providing stakeholders with confidence that an experienced party is involved, or entirely confidential, with Echo Base working privately alongside the founder or board without a public position. Echo Base selectively takes officer or director appointments and works with the company's counsel and, when a process is needed, a restructuring financial advisor.

Echo Base Recovery, the firm's asset administration platform, can be appointed separately when a company ceases operations. It manages custody control, reconciliation, claims administration and wind-down.

"In every restructuring there is less value than there are claims against it, and how that gets divided is usually settled in the first two weeks, before anyone has run the numbers," said Roshan Dharia, Chief Executive Officer of Echo Base. "A company suspends withdrawals, puts out a statement, pays one claimant ahead of another, and by the time advisors arrive the leverage is gone and the record is working against them. We are usually the counterparty across the table in these situations. We know what the other side does next because that is where we regularly sit."

"A company in this position will retain counsel, and where a process requires a financial advisor, it should do both," Dharia added. "But that takes weeks, needs a defined mandate, and typically results in an announcement that catalyzes a more intense wave of scrutiny with a new set of decisioning. The decisions that determine how smooth or painful the process ultimately becomes get made before any of that exists, usually by a founder at midnight with incomplete information and nobody to call. We take that call."

EBRx is managed by the same investment, operating and restructuring team that handles Echo Base's own transactions. The team has served as the creditor, acquirer and counterparty in such situations, providing insight into what the other side will accept. Echo Base acts as a principal through its investment strategies and as a trusted advisor through EBRx, allowing the company to selectively deploy flexible, stabilizing capital when needed. This combination of capital and restructuring expertise positions Echo Base as the lead professional navigating the distressed digital asset landscape.

About Echo Base

Echo Base is a privately funded special situations platform that acquires, finances and advises companies, founders and boards in digital asset markets. The firm combines distressed investing expertise with deep operating capability, enabling intervention when both capital structure and operations need coordinated action. Echo Base invests through Echo Base Opportunities and Echo Base Finance, and advises through Echo Base Restructuring and Echo Base Recovery. More information is available at eb.global.