Cryptocurrency Lender Vauld Seeks Safeguard From Creditors
In order to allow the struggling lender more time to restructure its operations after dropping asset prices had an impact on its operations earlier this month, Singapore’s Vauld Group is requesting a moratorium against its creditors.
The Wall Street Journal reported on Wednesday that Vauld requested a moratorium order in a Singaporean court on July 8. If approved, the moratorium would give the troubled lender more time to find a suitable restructuring strategy.
The Journal claimed that while the moratorium helps the company avoid total shutdown, a Singaporean moratorium order is comparable to Chapter 11 bankruptcy in the United States.
To allow management “the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders,” Vauld announced in a statement on July 11 that it will seek a moratorium order. The application for the moratorium, as the Journal noted, was submitted three days earlier.
Due to unfavorable market conditions, Vauld ceased deposits, withdrawals, and trading on July 4. This ended a tumultuous three-week period during which users attempted to withdraw approximately $198 million from the site. Vauld’s CEO, Darshan Bathija, revealed that his organization will be laying off 30% of its workforce at the same time that Vauld was experiencing a run on assets.
The overly leveraged players in the cryptocurrency market were exposed by the collapse of the Terra ecosystem in May, which led to the high-profile failures of Celsius Network, Voyager Digital, and Three Arrows Capital. Due to liquidity issues, a number of exchanges have temporarily stopped operating their trading platforms.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Cryptocurrency Lender Vauld Seeks Safeguard From Creditors
In order to allow the struggling lender more time to restructure its operations after dropping asset prices had an impact on its operations earlier this month, Singapore’s Vauld Group is requesting a moratorium against its creditors.
The Wall Street Journal reported on Wednesday that Vauld requested a moratorium order in a Singaporean court on July 8. If approved, the moratorium would give the troubled lender more time to find a suitable restructuring strategy.
The Journal claimed that while the moratorium helps the company avoid total shutdown, a Singaporean moratorium order is comparable to Chapter 11 bankruptcy in the United States.
To allow management “the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders,” Vauld announced in a statement on July 11 that it will seek a moratorium order. The application for the moratorium, as the Journal noted, was submitted three days earlier.
Due to unfavorable market conditions, Vauld ceased deposits, withdrawals, and trading on July 4. This ended a tumultuous three-week period during which users attempted to withdraw approximately $198 million from the site. Vauld’s CEO, Darshan Bathija, revealed that his organization will be laying off 30% of its workforce at the same time that Vauld was experiencing a run on assets.
The overly leveraged players in the cryptocurrency market were exposed by the collapse of the Terra ecosystem in May, which led to the high-profile failures of Celsius Network, Voyager Digital, and Three Arrows Capital. Due to liquidity issues, a number of exchanges have temporarily stopped operating their trading platforms.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
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