The High Court of Singapore granted Defi Payments Ltd., the founder of the Vauld crypto-credit platform, protection against financial claims from platform customers for 3 months, Bloomberg reports. According to the publication, the introduced moratorium deprives 147,000 Vauld creditors of the right to file lawsuits until November 7.
The court decision partially satisfied the application of Defi Payments dated July 12: the company requested a moratorium for six months. The judge clarified that an extension of the deadline is possible after assessing the progress of the firm in establishing contacts with its creditors, the article says.
Founded in 2019, Singapore-based cryptocurrency lending and trading platform Vauld, formerly known as Bank of Hodlers, decided in mid-June to reduce its staff by 30%, cut marketing spending, and cut team executive pay by 50%. In early July, Vauld suspended withdrawals, trading, and deposits on the platform. The company noted that these decisions were prompted by the current situation in the digital asset market.
Simultaneously with the application for a moratorium, the Vauld crypto platform informed investors that it was short of $70 million to cover its obligations. Vauld has about $330 million in assets and about $400 million in liabilities. Also, a significant part of the platform's assets is placed in loans for a period of 3 to 11 months, which cannot be withdrawn ahead of schedule.