(Duplicated) Vauld Group's Application for Moratorium Granted by Singaporean Court

Embattled cryptocurrency lending platform, the Vauld Group has received a nod from a High Court in Singapore with respect to its application for a Moratorium on its debts.

Since the Singapore-based firm halted its withdrawals early in July, it has been exploring diverse avenues to get its woes behind in a way that many will benefit as best as possible.

With its woes largely fueled by the onslaught in the broader crypto market, Vauld has garnered a lot of creditors, most of whom are also keen on settling the company’s liquidity challenges. In July, the company filed an application for a 6-months moratorium in Singapore, imploring the court to grant the request in order to be able to figure out the best avenue to settle its teaming creditors.

Rather than grant it the 6 months it requested, the court granted 3 months instead, and with the time given, all creditors, primarily those domiciled in Singapore will grant the firm the allowance to explore different options in its proposed restructuring plans.

While its issues are non-exclusive, Nexo, another mainstream crypto lender in the space has offered to bail out the company but requested a 60-day period to conduct its due diligence. While the Nexo-requested time is still counting, Vauld Group will have enough time to get feedback from the bigger crypto lender, and hopefully, the offer that will be proposed will be favorable enough to put an end to its current crisis.

Just like Vauld Group, the duo of Celsius Network and Voyager Digital, the other two distressed crypto lenders in the US are also facing bankruptcy challenges with a restructuring deal in the works for both. 

Both companies have also received offers with Celsius Network failing to respond to the offer from Nexo days after its liquidity crisis started. Voyager Digital’s representatives called the offer from FTX and Alameda Ventures a self-centered one that can only benefit the exchange’s behemoth.

As it stands, none of the above-profiled lending platforms have a viable solution up their sleeves but the granted moratorium will grant Vauld Group succor for the time being.