Vauld gets creditor protection until January as court blocks longer extension

Quick Take

  • Troubled crypto lender Vauld has received another moratorium extension until Jan. 20 to explore its options, an email obtained by The Block shows.
  • Vauld had sought an extension until March 7, but it can once again apply for an extension, according to the email.

Troubled Asian crypto lender Vauld has received a further extension to its legal protection from creditors — albeit a shorter delay than requested. 

The company now has until Jan. 20 to explore options to ease its financial troubles, according to an email from Vauld to its creditors obtained by The Block. Vauld, however, had sought protection through March 7. The firm's previous creditor protection expired on Nov. 7 and on the same day, the latest extension was granted in the Singapore Hight Court at a hearing before Justice Aedit Abdullah, according to the email.

Vauld halted client withdrawals in July and owes over $400 million to creditors. At the time, rival Nexo entered into a 60-day exclusive due diligence agreement with Vauld to potentially acquire it, but it has extended the due diligence period twice. Last month, The Block reported that Nexo could take "as long as needed" to decide on the potential deal, while it is "cautiously optimistic" about it.

Meanwhile, customers' funds remain stuck. If Nexo doesn't acquire Vauld, the latter has said it has other options to explore, including issuing a token and raising capital.

If Vauld were to apply for a further moratorium, a hearing would take place on Jan. 17, subject to the availability of the court, the email said.


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In the meantime, the court has ordered Vauld to submit an affidavit by Nov. 25 addressing issues, including the situation faced by its Indian entity, Flipvolt Technologies. In August, India's Enforcement Directorate froze assets worth $46 million after it found a Vauld client was involved in a money laundering case.

"We are committed to alleviating the hardship faced by our creditors, and the company is working towards achieving a restructuring that would be in the interests of the creditors," Vauld said in the email.

The firm did not immediately respond to a request for comment.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.


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