Vauld, an embattled crypto lending platform, is thanking its lucky stars after it was granted another period of creditor protection. The Singapore court has ordered the company to come up with a revival plan before the end of next month.
Vauld has to close its negotiations with a digital-asset fund manager to take over executive control of the tokens stuck on its platform. The platform told the court that negotiations have entered the advanced stage. Vauld suspended withdrawals for its 800,000 customers in July 2022 because of unfavorable market conditions. It also took the harsh step due to an unprecedented $200 million worth of withdrawals in under two weeks.
Moreover, the platform was granted a three-month moratorium to create a restructuring plan for the business. Vauld was ordered to come up with a better outcome for its creditors. But the court rejected the crypto company’s request for a six-month protection period. The judge argued that a lengthier moratorium would not get adequate supervision and monitoring.
It came to the fore that Nexo, a Swiss-headquartered crypto lender, wanted to acquire Vauld with all its assets. But Nexo’s office was raided in Bulgaria and Vauld stepped back from the deal. Singapore has been very swift in getting crypto companies to overcome problems. Zipmex was given a three-month moratorium to solve its liquidity issues in August 2022.