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Embattled crypto lending platform Vauld is once again granted creditor protection from a Singapore court. The company is expected to come up with a recovery plan before February 28.

As reported by Bloomberg on January 17, Vauld was granted more than a month to close negotiations with one of the two digital asset fund managers to regain executive control of tokens locked on its platform. Apparently, Singapore’s high court was satisfied with the company’s assertion that negotiations have entered an “advanced stage”.

In July 2022 the platform stopped direct debits for its 800,000 customers, citing unfavorable market conditions and unprecedented withdrawals of $200 million in less than two weeks. In August, she already obtained a three-month moratorium to propose a plan to restructure the company and offer a better result to her creditors. At the time, the judge rejected the company’s request for a six-month protection period, citing concerns that a longer moratorium “will not be given adequate supervision and control. “.

As soon as the first moratorium began, it became known that Nexo, a crypto lender headquartered in Switzerland, intended to acquire Vauld with all of its assets. However, after Nexo’s own office in Bulgaria was searched by prosecutors, Vauld denied any possibility of that deal.

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This is not the first time that Singaporean authorities have shown they are willing to let struggling crypto companies work their way out. Another major Singapore-based platform, Zipmex, was also granted a three-month moratorium to address liquidity issues in August.

However, the fate of crypto lending in the country remains uncertain, with Singapore’s central bank offering ban digital payment token service providers to offer “any credit facility” to consumers, including fiat currencies and cryptocurrencies.