Vauld has achieved the extension of temporary protection against creditors

Vauld has achieved the extension of temporary protection against creditors

https://gagarin.news/news/court-allows-celsius-network-to-mine-and-sell-bitcoin/

The Vauld cryptolending platform has achieved a moratorium extension on the proceedings until January 20, 2023. About this writes The Block.

The high court of Singapore did not satisfy the time requested by the company – until March 7. If Vauld again applies an application for extension, then the hearing in the case will take place on January 17.

Until November 25, 2022, representatives of the platform must provide written indications regarding the problems that have arisen.

“We strive to alleviate the difficulties that our lenders are faced with, and work on restructuring, which would be in their interests,” the company said.

On July 4, the cryptolending platform announced the suspension of operations and possible restructuring due to financial difficulties. The next day, it became known that the competitor Nexo signed a preliminary agreement on the absorption with Vauld.

Later, the media, citing documents for the court, found out that the volume of outstanding Vauld debt after these events amounted to $ 402 million. Of these, $ 363 million fell on retail investors. The company did not return $ 34 million to one of them, three more – more than $ 10 million.

The problems of the platform began with Terra collapse – she kept the equivalent of $ 28 million. The next blow was the overall drop in cryptorrhist – Vauld held positions in Bitcoin, Ethereum, Matic and XRP.

The defaults of some counterparties that led to irrevocable losses ~ $ 1.7 million were the third factor in the loss of financial stability. The fourth reason for the onset of bankruptcy was sponsorship agreements.

Recall that in August Vauld has achieved temporary protection against creditors – the court provided the Moratorial platform until November 7.

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