Vauld cryptocurrency exchange filed the Application for a moratorium order for protection against its creditors. Cutting its workforce by 30%, suspending withdrawals and trading were insufficient for the lending firm.
The duration of the moratorium is 6 months. The company stated the following on their website:
"The management has decided that, in light of the current circumstances, it would be in the best interests of all stakeholders (including creditors) to file the Application for a moratorium order in favour of DeFi Payments.
"This is so as to give DeFi Payments and the Vauld management the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders.
"At this time, the Vauld Group continues to have discussions with Nexo Inc whilst Nexo Inc carries out its due diligence, and also explores potential restructuring options that would best protect the interests of the Vauld Group’s stakeholders."
source: official website
Darshan Bathija, the Co-Founder and Chief Executive Officer of Vauld, added: "I want to clearly state that this filing does not mean that we are winding up or shutting down the company. Instead, we are asking for time to formalize our restructuring strategy so that we can resume operations and give you the best financial outcome.”
Nexo Has 60 Days to Acquire Vauld
At the beginning of July, Vauld signed an agreement with Nexo for a potential acquisition. Nexo has approximately 60 days to determine whether it wishes to acquire 100% of the crypto lending firm.
Vauld is in $402 million in debt, 90% ($362 million) is owed to retail investors that deposited their cryptocurrencies on the platform.
It is still unclear how many companies are struggling due to the bear market that gripped the crypto markets not long ago. It has been estimated that there are around 100 companies that have requested assistance from Binance.
However, Bitcoin has recovered in recent days. News that Tesla sold 75% of its BTC holdings (a notch over $900 million) triggered a bearish correction in the market.
