{"id":74724,"date":"2023-02-27T19:59:04","date_gmt":"2023-02-27T17:59:04","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=74724"},"modified":"2025-09-09T21:53:34","modified_gmt":"2025-09-09T18:53:34","slug":"court-extends-vaulds-moratorium-on-creditor-proceedings","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/court-extends-vaulds-moratorium-on-creditor-proceedings\/","title":{"rendered":"Court extends Vauld’s moratorium on creditor proceedings"},"content":{"rendered":"

The crypto-lending platform Vauld has once again secured an extension of the moratorium on proceedings. Singapore’s High Court has set a new deadline \u2014 24 March, The Block<\/a> reports.<\/p>\n

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Initially, the company sought temporary protection until 28 April. According to the report, Vauld also announced that it had terminated negotiations for a possible takeover with competitor Nexo.<\/p>\n

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\\”Nexo was not able to provide sufficient information to substantiate its solvency claim (it declined to undergo a comprehensive financial audit),\\” the statement said.<\/p>\n<\/blockquote>\n

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An alternative restructuring plan includes two options: the company’s assets are placed under management or distributed among creditors through a managed liquidation.<\/p>\n

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On 4 July 2022, the crypto-lending platform announced a suspension of operations<\/a> and a possible restructuring due to financial difficulties. The next day it emerged that competitor Nexo \u043f\u043e\u0434\u043f\u0438\u0441\u0430\u043b \u0441 Vauld<\/a> preliminary agreement to acquire Vauld.<\/p>\n

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Subsequently, media citing court documents found that Vauld’s outstanding debt after these events amounted to $402 million<\/a>. Of this, $363 million was owed to retail investors, one of whom the firm did not return $34 million, and more than $10 million to three others.<\/p>\n

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The platform’s problems began with the \u043a\u043e\u043b\u043b\u0430\u043f\u0441\u0430 Terra<\/a> \u2014 the equivalent of $28 million it held in UST staking. The next blow was the overall crypto market downturn \u2014 Vauld held positions in Bitcoin, Ethereum, MATIC and XRP.<\/p>\n

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The third factor was defaults by some counterparties, which led to irrecoverable losses of about $1.7 million. The fourth reason for insolvency was spending on sponsorship deals.<\/p>\n

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In December, Vauld CEO Darshan Bathija said that talks with Nexo ‘did not come to fruition<\/a>‘. The latter denied backing out of the purchase<\/a> of the competitor and presented an updated takeover offer.<\/p>\n

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Earlier in January 2023, Nexo reached a settlement with U.S. regulators over allegations of unregistered securities sales and agreed to pay a $45 million fine<\/a>.<\/p>\n

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From 1 April 2023, the crypto-lending platform will discontinue<\/a> offering the Earn Interest Product to American investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

The crypto-lending platform Vauld has once again secured a moratorium extension. Singapore’s High Court set a new deadline of March 24, The Block reports.<\/p>\n","protected":false},"author":1,"featured_media":74725,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2227],"class_list":["post-74724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-vauld"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=74724"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74724\/revisions"}],"predecessor-version":[{"id":74726,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/74724\/revisions\/74726"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/74725"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=74724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=74724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=74724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}