The Singaporean authorities have reportedly granted Vauld, a cryptocurrency lender, an extended period of creditor protection. According to reports, Vauld has until February 28th to introduce a revival plan.
Vauld has been one of the worst affected cryptocurrency entities by the prolonged bear market. Last summer, the firm trimmed the size of its team by 30%, reduced its marketing campaigns, and later halted customer withdrawals.
After failing to ink an acquisition deal with Nexo, the firm filed for protection against creditors in Singapore. The process, similar to Chapter 11 bankruptcy in the USA, aimed to provide it the necessary “breathing space” to reconstruct its crippled operations.
Initially, the Singapore High Court ordered the protection to last until November 7, 2022. However, the authorities later extended that period to January 20, 2023.
According to a Bloomberg coverage, Vauld obtained another month and has until February 28, 2023, to design a restructuring plan.
A person familiar with the matter also said the company had received offers from two fund managers who could assume control of the assets stuck on the platform. Vauld stated that the discussions with these finance players are at an advanced stage.
The organization also assured that it has no plans to renew any agreement talks with Nexo.
The latter has been in the spotlight recently after the Bulgarian authorities raided its offices as part of a probe into suspected money laundering and tax crimes.