Cryptocurrency exchange Vauld announced the introduction of a moratorium on filing claims

Vauld, a Singapore-based cryptocurrency trading and lending platform, has filed an application with the country’s Supreme Court for a six-month moratorium on claims by creditors.

Thus, the exchange plans to protect its assets for the period of restructuring. According to the laws of Singapore, such a privilege is automatically granted to all companies for 30 days from the date of application to the Supreme Court. This is followed by a decision of the judiciary to initiate bankruptcy proceedings or extend the moratorium.

Vauld has hired legal advisors to assess possible options for the company’s financial recovery:

“The management decided that, in light of the current circumstances, it was in the best interest of all parties involved, including creditors, to file an application with the Supreme Court of Singapore. The moratorium will give DeFi Payments and Vault management the breathing space they need to prepare for the restructuring for the benefit of all stakeholders.”

Recently it became known that Vauld’s direct competitor, the Nexo cryptocurrency lending platform, is considering the possibility of acquiring the Vauld Group in order to take the market share of its Singaporean counterpart amid a wave of defaults of crypto projects.

“Vauld Group continues to negotiate a merger with Nexo while Nexo is conducting due diligence as well as exploring potential restructuring options that will best protect the interests of Vauld Group stakeholders,” explained Vauld co-founder and CEO Darshan Bathija. ).

Earlier, the head of Coinbase Institutional, Brett Tejpaul, said that bankrupt crypto companies themselves are to blame for their problems, because they neglected the basics of financial risk management.