Crypto lender Vauld granted one more month to restructure

Crypto lender Vauld granted one more month to restructure

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 Bloomberg, Vauld, 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, Nexo, 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 bankrupt, leaving 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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Ogwu Osaemezu Emmanuel

Ogwu Osaemezu Emmanuel is a graduate of Mass Communication and Media Studies. He joined the blockchain movement in 2016 when a friend of his introduced him to an investment platform accepting bitcoin. He has never looked back since then. Emmanuel believes the world needs real change and freedom from poverty. He sees crypto and the underlying distributed ledger technology as the catalyst to a better future for all.