Embattled crypto lender Vauld has been granted an extension on the period of creditor protection by a Singapore court to February 28, 2023.
Cryptocurrency lending platform, Vauld’s period of creditor protection has been extended by a court in Singapore to give it more time to work on its restructuring plan. The court extended the period of protection to February 28 after it initially had until January 20 to present a restricting plan. Vauld halted customer withdrawals in July and approached a Singapore court seeking temporary protection from its creditors so that it can work on the business and put it in a better shape to withstand the harsh market conditions. As of July, last year, Vauld owed its creditors $402 million, 90% of which originated from individual retail investor deposits.
In August 2022, the company was granted a three-month reprieve from creditors after it initially requested a six-month moratorium.
After freezing customer withdrawals and hiring advisers to explore its restructuring, it received bids from two digital-asset fund managers to take over management of the tokens stuck on its platform. Vauld has also been in talks with London-based crypto lender Nexo, which has offered to acquire 100% of Vauld so that it can expand its reach in the Asian markets. According to reports by Bloomberg, Vauld said that will not proceed with any deal with Nexo as the lender said the deal would not be in its creditors’ best interest.
Vauld was dealt another blow in August when the Indian Enforcement Directorate (ED) froze the crypto and bank assets of the company to the tune of $46 million.
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