The Singapore Supreme Court has placed a moratorium on crypto lending platform Vauld until 7 November 2022 instead of the six months requested. He writes about Bloomberg.

According to the decision, 147 thousand creditors will not be able to file a lawsuit against the company. The court did not decline an extension based on Vauld’s progress in resolving the issues.

The platform should provide creditors with cash flow and asset valuation data within two weeks. In eight weeks – information on the management of accounts.

On July 4, the crypto lending platform announced the suspension of operations and a possible restructuring due to financial difficulties. The next day, it was learned that rival Nexo had signed a pre-acquisition deal with Vauld.

Later, the media learned, citing court documents, that the volume of Vauld’s outstanding debt after these events amounted to $ 402 million, of which $363 million fell to retail investors. The company did not refund more than $34 million to one of them and $10 million to three of them.

The problems of the platform began with the collapse of Terra – holding the equivalent of $28 million in UST stock. The next blow was the general decline of the crypto market – Vauld took positions in Bitcoin, Ethereum, Matic and XRP.

The third factor in the loss of financial stability was the default by some counterparties, resulting in irreparable losses of ~$1.7 million. The fourth reason for the bankruptcy to begin was the spending on sponsorship deals.

Mike Novogratz, president of Recall, Galaxy Digital, said that the collapse of the Terra ecosystem, the problems of Celsius Network, Voyager Digital and Three Arrows Capital make the entire industry look like a “group of idiots”.

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