Beleaguered crypto lender, the Vauld Group has been granted a 3-month moratorium from the Singaporean High Court.
This moratorium will protect the crypto lender against any angered customer or investor who wishes to take up a lawsuit against it. Those who already have a lawsuit filed against Vauld would not be able to continue with the legal proceedings.
Vauld Explores Restructuring Process
Vauld Group can now explore more restructuring options till November 7 as stated by the court during the hearing today.
The troubled Asian crypto lender has been through so many woes in the past few months. Its investment in TerraUSD which crashed, including the prevalent extreme market condition, added up to put the lender in debt. With the market downtrend, Vauld was forced to halt all withdrawals, deposits, and other trading options on its platform.
To further manage the situation, the Singaporean lender also went ahead to onboard Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP on its legal team. Kroll Pte Limited, a private financial advisor also was recruited to offer advisory services in the wake of the current realities. Although, Valud had to cut down on its staff strength by letting go of about 30% of its employees.
Also as part of its restructuring plans, Vauld applied to the Singapore High Court for a 6-month moratorium in favor of decentralized finance (DeFi) payment. According to the Vauld official website, “This is so as to give DeFi Payments and the Vauld management the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders.”
After a few weeks of consideration, the Singaporean High Court decided to give Vauld a 3-month moratorium.
Along with the moratorium, Vauld is expected to come up with a creditors committee. The application for the moratorium was achieved with the help of many other crypto lender creditors. As many as 2,280 creditors showed full support for the moratorium.
Nexo Offers to Rescue Troubled Crypto Firms
Arguably a unique consideration for the troubled lender, Nexo another crypto loaner which is based in London has offered to take over Vauld. Nexo plans to restructure and refinance Vauld once the acquisition process is completed.
Nexo also tried to buy out Celsius, another crypto firm that had experienced a similar fate as Vauld but Celsous never opened up for discussions.