•Vauld, a cryptocurrency lender, has been granted creditor protection by a Singapore court.
•The court has extended Vauld’s protection until February 28th, 2023.
•The firm is trying to revive its operations by introducing a restructuring plan.
Vauld, a cryptocurrency lending firm, has received an extended period of creditor protection from a Singapore court. The firm has been granted creditor protection until February 28, 2023, in order to give it time to present a restructuring plan. The move comes as the firm has been hit hard by the prolonged bear market, and is trying to revive its business.
Last summer, Vauld had to trim its size by 30%, reduce its marketing campaigns, and later halt customer withdrawals. As the firm failed to ink an acquisition deal with Nexo, it had no choice but to file for protection against creditors. The process is similar to Chapter 11 bankruptcy in the USA, and aims to help Vauld reorganize its debt in order to keep the business afloat.
The Singapore court has granted the firm the extra time to introduce a restructuring plan, although there is no guarantee that it will succeed. The restructuring plan will need to be approved by the court, and will involve negotiations with creditors. If it succeeds, Vauld will be able to continue its operations and pay back its creditors.
Vauld is hoping that its restructuring plan will be approved and that it will be able to recover from the prolonged bear market. It is a difficult situation for the firm, but the extra time granted by the court gives it a chance to turn things around. It remains to be seen if the plan will be approved and if Vauld will be able to revive its operations.