On August 1, a Singaporean court granted bitcoin lending startup Vauld a three-month suspension until November 7, 2022. After receiving demand letters from a few creditors, the judge further ordered the business a four-week deadline to look into withdrawal options for creditors who were in need.
The court said in a virtual session that all creditors would receive updated financial information on the Coinbase-backed business in another eight weeks.
Key Highlights:
- Vauld has been given three months to restructure and consider selling to Nexo.
- Following the Terra collapse, the company stopped accepting withdrawals in July.
- Its approximately 147,000 debtors are unable to obtain funds.
According to a Bloomberg article, Justice Aedit Abdullah allegedly rejected Vauld’s parent business Defi Payment Limited’s original request for a six-month moratorium on Monday, expressing fears that a longer suspension “won’t obtain enough oversight and monitoring.”
The moratorium, according to Vauld’s amended website FAQ on Monday, would provide the company the breathing room to develop a restructuring plan for the company and improve the situation for its creditors.
Darshan Bathija, a co-founder of Vauld, tweeted on July 5 that cryptocurrency lender Nexo has signed an indicative term sheet to acquire Vauld and its assets potentially.
The term sheet gives Nexo an exclusive 60-day exploring time to research Vauld activities before purchasing. Vauld will have 60 days to complete discussions before being able to speak with further potential investors.
