Singapore crypto exchange Vauld Group is seeking a moratorium against its creditors — a move that would give the troubled lender more time to restructure its business after collapsing asset prices impacted its operations earlier this month.
Vauld filed an application in Singapore on July 8 seeking a moratorium order, The Wall Street Journal пријавио Wednesday. If granted, the moratorium would provide the distressed lender more time to seek out a proper restructuring plan.
The Journal said a Singaporean moratorium order is similar to Chapter 11 bankruptcy in the United States, although the moratorium helps the company avoid complete closure.
Ваулд издата a statement on July 11 informing the public that it would pursue a moratorium order to give management “the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders.” However, as the Journal reported, the moratorium application was filed three days prior.
Релатед: Извор тврди да изложеност 3АЦ-а Дерибит вреди много мање него што је пријављено
On July 4, Vauld suspended deposits, withdrawals and trading due to adverse market conditions, capping off a volatile three-week stretch where customers tried to withdraw nearly $198 million from the platform. Around the same time that Vauld was experiencing a run on assets, CEO Darshan Bathija announced that his company would be cutting 30% of its staff.
We’ve taken the painful decision to reduce Vauld’s headcount by about 30%
Више информација на: https://t.co/gD7epuXuvo
— Дарсхан Батхија (@дарсханбатхија) Јун 21, 2022
The collapse of the Terra ecosystem in May exposed the crypto industry’s over-leveraged players, resulting in the high-profile bankruptcies of Целзијусова мрежа, Воиагер Дигитал and Three Arrows Capital. Several exchanges have temporarily suspended trading operations due to liquidity constraints.
Source: https://cointelegraph.com/news/crypto-lender-vauld-seeks-protection-against-creditors-report