Bankrupt and insolvent crypto lender, Vauld got relief from the Singapore High Court with the three-month moratorium extension to explore different options. However, the firm was seeking a six-month moratorium extension.
The moratorium extension will help Vauld to stay protected from creditors and meanwhile it can resolve its issue.
Under the three-month moratorium extension, creditors can’t take any legal action or make a claim against Vauld as it’s looking over the moratorium extension.
According to people related to the matter, the court approved a moratorium extension until November 7 in a hearing. The court also ordered Vauld to form a creditors committee.
Amid the downfall in the crypto and Terra-Luna collision, Vauld halted client withdrawals on July 4.
Currently, Vauld held an outstanding loan of $363 million to retail investors, which is 90% of the total outstanding amount of $402 million.
