Crypto Lender Vauld Gets Three Months Protection against Creditors

The parent of the troubled crypto lender, Vauld has been granted a three-month moratorium period by a Singapore court, Bloomberg reported. It will provide temporary protection to the company from creditors from taking any legal action.

However, the company asked for a moratorium period of six months, only half of which has been approved. The approved protection will last until November 7.

Vauld owes more than $400 million to its 147,000 creditors. Of the total, 90 percent originated from retail investor deposits.

“I am concerned a six-month moratorium won't get adequate supervision and monitoring,” said the Singapore High Court judge. He further highlighted that an extension of the protection period is also possible, but will be based on the assessment of the company’s progress in engagement with creditors.

Additionally, the court asked the crypto company to form a creditors committee for addressing the issues.

Troubles Leading to Acquisition?

Singapore-based Vauld is one of the crypto lenders that offered interest against cryptocurrency deposits. The interest rate on the platform was as high as 13 percent in some cases.

The troubles of the company were exposed when it suspended all activities, including withdrawals in early July citing “financial challenges.” It has witnessed $198 million in withdrawals from the platform since June 12, due to the woes of the cryptocurrency market.

Now, the company is in talks with Nexo, another crypto lending Crypto Lending The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market Read this Term platform, for an acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term. Moreover, the two companies signed a term sheet. The three months court protection will also allow Nexo to make due diligence on Vauld.

“We have to understand the liabilities, the receivables, who the counterparties are, what are the prospects of getting those receivables and, you know, all things like that in order to be in a position to make a decision. And it takes time,” said Nexo’s Co-Founder and Managing Director, Antoni Trenchev.