• The crypto lending firm Vauld filed for bankruptcy and subsequently sought protection from Singaporean creditors.
• The Singapore high court granted Vauld a three-month creditor protection period, which was later extended till February 28, 2023.
• Vauld has received indications from two digital asset fund managers interested in its assets and requested more time to handle the details of a potential takeover.
The crypto space was thrown into disarray in 2022 when a crypto winter hit and caused the value of most crypto assets to plunge drastically. This led to the bankruptcy of some firms, with one of these firms being Vauld, a crypto lending platform. In an effort to save itself from the chaos, Vauld sought protection from its Singaporean creditors, and the Singapore high court granted the firm three months of creditor protection.
However, due to the complexity of the situation, Vauld soon requested an extension from the court, and the court agreed to give them until February 28, 2023 to devise a revival plan with their creditors. It appears that the firm is in the process of being acquired by two digital asset fund managers who have expressed interest in Vauld’s assets. This potential takeover requires a great deal of negotiation and thus the extra time to properly handle all the details.
Vauld’s situation serves as a reminder of how quickly the crypto market can change. What was once a successful business can quickly become a victim of the rapid movements of the crypto market. Firms must remain vigilant and be prepared to adjust to the ever-changing environment in order to survive in this industry.