- Initially, the protection was ruled to continue until the 7th of November in 2022.
- Vauld has been given an additional month to come up with a strategy.
According to reports, the authorities of Singapore has extended the amount of time during which Vauld is protected from creditors. The cryptocurrency lender has until the 28th of February to provide a strategy to revive the company. Due to the protracted bear market, Vauld has been one of the cryptocurrency entities that has been hit the worst.
During the summer of 2022, they reduced the size of their crew by thirty percent, cut down on their marketing initiatives, and subsequently stopped client withdrawals.
Time to Rebuild Damaged Operations
After being unable to reach an acquisition agreement with Nexo, the company sought bankruptcy protection in Singapore to safeguard itself from financial obligations. The procedure, which was quite similar to Chapter 11 bankruptcy in the United States, was designed to provide the company the “breathing space” it needed in order to rebuild its damaged operations.
Initially, the protection was ruled to continue until the 7th of November in 2022 by the High Court in Singapore. After some time, the authorities decided to extend the deadline until January 20, 2023. According to a report by Bloomberg, Vauld has been given an additional month to come up with a strategy for its reorganization and now has until February 28, 2023, to do so.
A source with knowledge of the situation further said that the business had been offered ownership of the assets that were trapped on the platform by two different fund managers. According to Vauld, the conversations with people involved in the finance industry have reached a more advanced level.
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