Embattled crypto firm Vauld gets 3-month moratorium from SG court

The Singapore High Court has granted Defi Payments, the parent company of embattled crypto platform Vauld, a three-month moratorium, Forkast reported. The approval will prevent Vauld’s creditors from taking any legal action against the firm.

This comes after Vauld filed an application for a six-month moratorium last month. The final decision, however, only gave the company half the time it asked for.

The protection will last until November 7 with a possible extension if the company demonstrates transparency in its engagement with creditors and the court. According to Bloomberg, Justice Aedit Abdullah asked the crypto firm to set up a creditors committee and provide them with company information like cash flow, assets valuation, and accounts management in the coming weeks.

Vauld currently has 147,000 creditors to whom it owes as much as US$402 million. Early last month, the company froze withdrawals, trades, and deposits on its platform, and it also laid off 30% of staff. In a statement, the firm attributed its downfall to the Terra collapse in May, which created a domino effect across the crypto world.

Last month, Vauld signed a term sheet with Nexo as it sought to sell itself to the London-based rival. The two firms are in the middle of a 60-day talk to reach a final resolution about the deal.

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