Cryptocurrency exchange and lending startup Vauld needs to step up the pace in establishing its restructuring plan. The High Court of Singapore has just disapproved of the date of March 7 suggested by this company supported by Peter Thiel. Vauld will no longer be protected from creditors beyond the January 20 date.
Vauld, sheltered until January 20
In financial difficulty since the beginning of July, Vauld is struggling to recover from his fall. Fortunately, there are laws such as the CCAA (Companies’ Creditors Arrangement Act), favorable to the protection of companies against their creditors during restructuring. Vauld made the request and obtained his first scheduled deadline to end on November 7th.
Friday, November 11, The Block reported that the crypto lending specialist requested a 4-month extension from Singapore legal authorities. Unfortunately, the response did not meet the expectation of Darshan Bathija and his team. January 20, instead of March 7, is Judge Aedit Abdullah’s final verdict for Vauld.
It should also be noted that the court clarified that Vauld will have the opportunity to appear at a hearing scheduled for January 17 in the event of a request for a new moratorium.
Customer cryptos still blocked
Since the fall of Terra, many crypto projects, including DeFi platforms, have been swallowed up. Even the FTX juggernaut sank, a fact incomprehensible to many investors like Tom Brady.
Vauld had to suspend withdrawals from his platform as soon as clouds formed in his sky. At present, the crypto lending platform is said to hold approximately $400 million belonging to its creditors. 363 billion of them would belong to private investors.
Vauld’s hope, however, lay in Nexo, its direct competitor. However, the latter has retracted to focus on other alternatives (token issuance, capital raising, etc.). To drive the point home, India’s Enforcement Directorate conducted asset freeze (fiat and crypto) from Vauld worth $46 million in mid-August. This decision was taken as part of an investigation into Yellow Tune Technologies for money laundering. Indeed, the latter has links with Flipvolt Technologies, an Indian subsidiary of Vauld.
Right now, everything is upside down in the crypto universe. Many are waiting for the advent of transparent and adapted regulations in order to avoid the repetition of such situations. Ironically, the man who took on the role of cryptocurrency lawyer in Washington DC falls from the top of his empire. Let’s hope that Vauld, who has been able to hold out so far, can find other ways out to avoid the Terra and FTX bis scenarios.
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