Crypto lender Vauld secured an extension from the Singapore High Court on Jan. 17 to finalize its revival plan, Bloomberg reported.
Vauld’s creditor protection was set to expire on Jan. 20 and the lender sought to extend the protection until April 21. However, the court granted an extension only until Feb. 28.
Vauld halted customer withdrawals in July 2022 amid a market downturn and was exploring a restructuring plan. Vauld owes around $400 million to its creditors — most of whom are retail investors.
Rival Nexo intended to acquire Vauld, but the deal fell apart when Vauld rejected Nexo’s final proposal on Jan. 5, according to various reports. Shortly after the proposal was rejected, authorities raided Nexo’s Bulgarian office on Jan. 12 over alleged involvement in money laundering and other financial crimes.
Vauld is in the “advanced stages” of discussion with two crypto fund managers to take over the management of its assets, an unnamed source told Bloomberg. The aim is that the fund managers would invest Vauld’s assets and repay creditors with the investment returns.