Troubled Vauld Receive Moratorium Extension Till Jan 20th


Singapore-based cryptocurrency exchange Vauld which has been going through a bankruptcy process after halting withdrawal on its platform in July has received a moratorium extension till January 2023, according to an email sent to its creditors. Specifically, the Peter Thiel-backed digital asset company now has until January 20th to come up with an efficient restructuring plan under the new creditor protection.

As per a statement in the email, “We are committed to alleviating the hardship faced by our creditors, and the company is working towards achieving a restructuring that would be in the interests of the creditors.”

At the beginning of July, Vauld restricted its customers from initiating withdrawals from their wallets citing the adverse market conditions. Following the crash of Terra/LUNA, Many Vauld users withdrew over $198 million in cryptocurrencies from the platform. Like many other crypto exchanges during this period, this singular action stressed the Singaporean exchange.

Markedly, market volatility was not the only challenge of the exchange at that time. Vauld was equally facing financial stress from its investors and business partners.

At this point, the Chief Executive Officer (CEO) of the troubled exchange Darshan Bathija declared that they would apply for a moratorium in the Singapore High Court so that the firm will be protected against any legal proceedings from its creditors.

Vauld Files For 6 Months Moratorium

Eventually, when the firm filed for a 6-month moratorium, Justice Aedit Abdullah of the Singapore High court granted a 3-month moratorium instead. This moratorium was meant to expire on the 7th of November. Vauld also received an order to create a creditor’s committee while making efforts to begin its restructuring process in earnest.

On the same day that the 3 months moratorium elapsed, the troubled cryptocurrency exchange made another request for an extension till March 7th. Like the other time, the same judge granted the creditors’ protection till January instead. Additionally, Vauld has been asked to submit an affidavit stating all its issues, including those faced by its Indian subsidiary Flipvolt Technologies.

Meanwhile, crypto lender Nexo has been trying to acquire Vauld and has signed an indicative term sheet with the troubled exchange. Initially, Nexo had a 60 days window to conduct its due diligence. So far, Nexo has requested an extension of this due diligence period twice.

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