The troubled crypto exchange Vauld has revealed that the Singapore government has given a moratorium upto 7th November 2022. The hearing was conducted on August 1st 2022 via Zoom meeting.
Vauld had recently halted withdrawal for its customers citing funds deficit of $ 70 million.
Vauld sent email to its creditors making the announcement.
What announcement was made by court in Vauld Moratorium case?
Following announcements were made by the Court:
Moratorium shall be in place until 7 November 2022, and any application for extension is to be made beforehand within a reasonable time. If a hearing for the extension application cannot be scheduled before 7 November 2022, the Court is prepared to grant an interim extension until the disposal of the extension application.
The email further said that –
Two weeks from the date of the Order, i.e. 15 August 2022, the Applicant is to (i) respond to creditors who had made specific enquiries during the Hearing (the “Responses to Creditors”) and (ii) provide its valuation of significant assets, as well as profitability and cash flow forecast (as required under Section 64(6)(a) and (d) of the IRDA respectively) to the Court.
The mail further said that in next 4 weeks, Vauld must tell court whether they can start refunds to its customers –
Four weeks from the date of the Order, i.e. 29 August 2022, the Applicant is to update the Court on (i) the Responses to Creditors, (ii) whether a withdrawal allowance can be made for creditors, and if so, the proposed plan, and (iii) any proposals for a committee of creditors to be formed.
Court also said that Vauld had to submit its management accounts to the court by 26th September.
Eight weeks from the date of the Order, i.e. 26 September 2022, the Applicant is to provide the Court with its management accounts
Vauld posted a blog detailing all the outcomes of the hearing.
Nexo plans to Acquire Vauld
Another crypto lender Nexo has plans to acquire Vauld. They had mutually agreed to a 60 days waiting period to see how things unfold. After the courts hearing, this deal is expected to fall through.
Keep watching this space, we will update on further developments.
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