Singapore-based bankrupt company that provides loans on cryptocurrencies vauldobtained a one-month grace period from the court for restructuring.
As a result of the evaluation, the members of the court decided to extend the protection period of the company from creditors until March 24, 2023. The current protection of the sunken crypto debt platform was expected to expire next day.
A Valud spokesperson told sources that another court hearing will take place to uphold the verdict.
Vauld’s Bankruptcy Process
Crypto markets have left behind a difficult 2022 year. Miners found it difficult to continue their activities due to rising energy costs. Some active crypto startups went bankrupt as the market collapsed and rising interest rates made it difficult to access finance.
As the situation was in mid-year, Singapore-based crypto debt platform Vauld suspended withdrawals, trading and investment transactions due to the liquidity crisis. Unable to overcome the crisis, the company applied to the state authority for creditor protection in July.
There are potential buyers for Vauld, whose bankruptcy process continues. According to the news Bloomberg published last month, two different digital asset funds have made bids to buy the bankrupt company.
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