Singapore high court has extended Vauld’s creditor protection to Feb. 28. Vauld owes its creditors over $400 million.
Vauld, one of the numerous victims of the crypto winter of 2022, has once again secured a creditor protection extension from Singapore High Court’s justice Aedit Abdullah. The embattled lender has until Feb. 28 to look for ways to solve its financial problems and make investors whole.
Per a report by BloombergVauld, which owes its creditors over $400 million, initially prayed to the court to extend the moratorium to Apr. 2023. However, that request could not be granted by the authorities.
Vauld’s rival company, Yesxo, which recently got into a scuffle with Bulgarian authorities, has tried to ink an acquisition deal with the lender in the past months. Still, negotiations have failed to yield any positive results.
On Jan. 6, Vauld and its committee of creditors affirmed the dismissal of procurement negotiations with Nexo. An official statement by Vauld read:
“We sought a mutual agreement with Nexo to terminate the existing exclusivity arrangements, and we are continuing our active engagement with the shortlisted fund managers in developing a viable strategy that would best serve the creditors’ interests.”
Vauld’s statement on Nexo deal termination
Last year was one of the most catastrophic for crypto market participants, as countless established businesses went bankruptleaving investors and creditors empty.
So far, none of the bankrupt crypto firms of 2022 has been able to reimburse their customers fully. It remains to be seen whether Vauld will be an exception.
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