{"id":76296,"date":"2023-03-28T10:40:00","date_gmt":"2023-03-28T07:40:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=76296"},"modified":"2025-09-10T16:37:13","modified_gmt":"2025-09-10T13:37:13","slug":"vauld-secures-another-extension-to-creditor-protection-moratorium","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/vauld-secures-another-extension-to-creditor-protection-moratorium\/","title":{"rendered":"Vauld secures another extension to creditor-protection moratorium"},"content":{"rendered":"

Vauld, a crypto-lending platform, has again secured an extension of the moratorium on proceedings. Singapore’s High Court set a new deadline \u2014 28 April, The Block<\/a> reports.<\/p>\n

The previous deadline<\/a> expired on 24 March. The company has managed to push the deadline back for a fifth time.<\/p>\n

According to the publication’s sources, Vauld will need to refine its restructuring proposal by 14 April.<\/p>\n

The company promised that the plan for an “orderly wind-down” over three years would yield a faster and more efficient return of funds to creditors, and would also provide adequate time for DeFi Payments [the firm’s Singapore subsidiary] to recover illiquid assets.<\/p>\n

If the proposed restructuring plan is rejected following the hearings, Vauld will be liquidated. The process could take more than ten years.<\/p>\n

The company expects a “restart of the business,” shifting to a revenue-generation model for new clients through DeFi protocols to attract new capital. In this scheme creditors would “retain oversight and control over expenditures through a representative appointed to the board.”<\/p>\n

The initiative is expected to be implemented by a “new leadership.” Vauld co-founders Darshan Bathija and Sanju Sonikuri will step down.<\/p>\n

On 4 July 2022, the crypto-lending platform announced a halt to operations<\/a> and possible restructuring amid financial difficulties. The following day, it emerged that rival Nexo signed with Vauld<\/a> a preliminary agreement to acquire.<\/p>\n

Subsequently, media citing court documents found that Vauld\u2019s outstanding debt after these events<\/a> totalled $402 million. Of that, $363 million went to retail investors, one of whom the firm did not return $34 million, and another three \u2014 over $10 million.<\/p>\n

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

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

In December 2022, Bathija said that negotiations with Nexo did not come to fruition<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Vauld has again secured an extension of the moratorium on proceedings. Singapore’s High Court set a new deadline of 28 April, The Block reports.<\/p>\n","protected":false},"author":1,"featured_media":76297,"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":[1162,2227],"class_list":["post-76296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-vauld"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/76296","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=76296"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/76296\/revisions"}],"predecessor-version":[{"id":76298,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/76296\/revisions\/76298"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/76297"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=76296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=76296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=76296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}