• Vauld, a Singapore-based cryptocurrency lender, has received an extension from a court in Singapore to present its restructuring plan. This will give Vauld protection from its creditors until March 24.
• Last July, Vauld filed for creditor protection after suspending withdrawals, trading and deposits on its platform.
• Two digital asset fund managers have made takeover bids for the crypto lender.
Vauld Gets Extension for Restructuring Plan
Vauld, a Singapore-based cryptocurrency lender, has received an extension by a court in Singapore to present its restructuring plan, giving it protection from its creditors until March 24. The existing legal protection expires on Feb. 28.
Background of Vauld
Last July, Vauld had filed for creditor protection after it suspended withdrawals, trading and deposits on its platform. Two digital asset fund managers have since then made takeover bids for the crypto lender. As of July, Vauld owed creditors $402 million; 90% of which originated from individual retail investor deposits and authorities in India froze assets worth 3.7 billion rupees ($44.7 million) a month after filing for creditor protection.
Fellow crypto lender Nexo had been the frontrunner to acquire Vauld but talks broke down at the start of this year according to Bloomberg report last month. Both digital asset fund managers made takeover bids for the crypto lender however no agreement was reached yet as of now .
The moratorium has been extended till 24-Mar-2023,” a Vauld spokesperson told CoinDesk via email”There will be another hearing scheduled before that to confirm the final decision about approval of scheme.”
Vauld’s extension gives them more time in order to come up with their restructuring plan and reach an agreement with one of the two digital asset fund managers who have expressed interest in taking over the company or else they risk insolvency if no agreement is reached before March 24th when their legal protection expires again