Crypto lending outfit Vauld would be counting itself lucky after the Singaporean High Court announced a verdict in its favor. According to the ruling by the court, the firm has been granted an extended grace period to settle creditors. In the announcement, the platform would be provided with a three-month extended period to free it from debacles with creditors. Although the platform might not see it as a win, since it requested six months, the time given will be more than enough to get its affairs in order.
Vauld plans to restructure during the grace period
As per a report by Bloomberg, the presiding judge refused to grant a six-month extension due to supervision-related issues. During this grace period, the company would be shielded from several actions that could be taken against them, including legal actions, resolutions, and other issues. Notably, the company owes more than 140,000 users.
In its statement, Vauld mentioned that the grace period would enable the company to fashion out a great plan where they would reform the platform and make their creditors happy. During the period, the company also hopes to look at its options to seek a better way forward.
The platform paused withdrawals due to harsh market conditions
According to a statement by Vauld, it mentioned that without the extended grace period, they would likely open up a fraction of users’ funds to them. This new extension is set to expire on November 7, and the presiding judge has promised to extend it further should the firm be open about its dealings with payments. The firm has also been granted two weeks to rally around a committee that will oversee and address issues regarding cash movement on the platform. The judge also asked them to look into specific details regarding the minimum withdrawal limit for users on the platform.
Vauld paused withdrawals some weeks ago, citing the harsh conditions of the market. The update came off the back of a hefty 200 million withdrawal made by the platform users. Although the company is in talks of acquisition by another party, it has not yet been finalized. However, the head of the company has said that pending certain checks into the financials and every other aspect, the acquisition is set to go on as planned. The acquiring party will have about 60 days to complete their checks and move on with the deal.
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