Singapore-based crypto platform Vauld has been granted a three-month moratorium until November 7 by Singapore’s High Court to prevent its creditors from starting or continuing legal proceedings against it, according to report from The Block.
This would give Vauld some breathing room to restructure its business and close its acquisition deal with Nexo, a Zug-based digital asset institution.
The court also ordered Vauld to form a creditors’ committee. The crypto lender reportedly owes a total of $402 million to its creditors. 90% of this, which amounted to US$363 million, was from deposits of individual retail investors.
Nexo has signed an indicative term sheet granting it a 60-day exclusive study period, which will end on September 4, 2022, to complete the due diligence process.
Earlier in July, the embattled crypto firm was forced to halt all withdrawals, trading and deposits on its platform.
Vauld explained his updated FAQ website that it has experienced significant liquidity pressure since June 12, 2022, when Celsius announced that it would pause all withdrawals.
There were net withdrawals from Vauld customers of approximately US$56 million the day after the announcement.
Vauld is not currently licensed by MAS, nor has it applied for an exemption from holding a license under the Payment Services Act. However, he has submitted an application for a license which is pending consideration.
Crypto Firm Vauld Granted 3-Month Moratorium by the Singapore Court