• The Singapore High Court grants Vauld a three-month moratorium to safeguard him from creditors

  • The Singapore High Court granted protection from creditors to cryptocurrency platform Vauld, which froze customer withdrawals last month.

    Vauld’s parent business, Defi Payment Ltd., had requested a six-month moratorium from the court. However, the court only issued a three-month moratorium, which will last until November 7.

    The moratorium shields Vauld from its 147,000 creditors, who are barred from taking legal action against the company until the moratorium is removed.

    The court stated that Vauld’s moratorium may be extended dependent on the firm’s success in cooperating with creditors. The court ordered the lender to form a creditors committee to resolve difficulties, and the progress will be evaluated at the next hearing.

    The court also ordered Vauld to submit creditors with cash flow information within two weeks. According to the news site, the lender has eight weeks to disclose management of accounts information with creditors.

    According to Defi Payments’ counsel, Vauld need the moratorium time to restructure, complete Nexo’s due diligence, and reconcile group business accounting.

    Vauld CEO Darshan Bathija said shortly after suspending withdrawals and trading on its platform that the lender had signed a term sheet with Nexo for up to a 100 percent purchase.

    Bathija stated in an email to creditors last month that Vauld has $330 million in assets and $400 million in liabilities at the group level. In July of last year, the platform raised $25 million from Peter Thiel’s Valar Ventures, Coinbase Ventures, and Pantera Capital.

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