• Singapore High Court has extended Vauld’s creditor protection until March 24, 2023.
• Vauld faced an unprecedented liquidity crisis when $200 million left the platform in less than two weeks.
• The crypto lending platform is backed by Coinbase Ventures, PayPal co-founder Peter Thiel’s Valar Ventures, and CMT Digital.
Troubled Crypto Lender Granted Extension of Creditor Protection
Singapore-based cryptocurrency lender Vauld was granted an additional extension of its creditor protection by the Singapore High Court. The existing legal protection has been extended to March 24, 2023. This provides them more time to present their restructuring plan.
Vauld’s Liquidity Woes
Vauld encountered a sudden liquidity crisis in July 2022 after $200 million left the platform in less than two weeks due to a turbulent market. In order to restructure the business and protect it from creditors, they applied for temporary protections from the court and were granted a three-month moratorium period. As of July 2022, Vauld owes its creditors a total of $402 million with 90% coming from individual retail investor deposits.
Backed by Coinbase Ventures & Others
The crypto lending platform is backed by Coinbase Ventures, PayPal co-founder Peter Thiel’s Valar Ventures, and CMT Digital. After freezing customer withdrawals, advisers were appointed to explore restructuring the business and receive bids from digital asset fund managers to manage tokens stuck on its platform. Bloomberg reported that talks with London-based cryptocurrency lender Nexo were ongoing but eventually failed as it would not be in the best interests of their creditors.
Final Decision Postponed Until March 2023
The Singapore High Court has now given Vauld an Extension until March 24th so that they can present their restructuring plan for approval before this date for confirmation of final decision about approval of scheme.
Disclaimer
This article is provided for informational purposes only and should not be used as legal, tax, investment or financial advice