Vauld, a cryptocurrency lender, wants to be protected from creditors

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Last Updated on July 21, 2022 by Bitfinsider

Following what appeared to be a run on its assets, the cryptocurrency exchange, which is backed by Peter Thiel and Coinbase, stopped accepting withdrawals in July.

In order to allow the ailing lender more time to restructure its operations after dropping asset prices had an impact on its operations earlier this month, Singapore’s Vauld Group is requesting a moratorium against its creditors.

The Wall Street Journal reported on Wednesday that Vauld requested a moratorium order in a Singaporean court on July 8. If approved, the moratorium would give the troubled lender more time to find a suitable restructuring strategy.

The Journal claimed that while the moratorium helps the company avoid total shutdown, a Singaporean moratorium order is comparable to Chapter 11 bankruptcy in the United States.

To allow management “the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders,” Vauld announced in a statement on July 11 that it will seek a moratorium order. The application for the moratorium, as the Journal noted, was submitted three days earlier.

Due to unfavorable market conditions, Vauld ceased deposits, withdrawals, and trading on July 4. This ended a tumultuous three-week period during which users attempted to withdraw approximately $198 million from the site. Vauld’s CEO, Darshan Bathija, revealed that his organization will be laying off 30% of its workforce at the same time that Vauld was experiencing a run on assets.

Source: Twitter

The overly-leveraged players in the cryptocurrency market were revealed by the collapse of the Terra ecosystem in May, which led to the high-profile failures of Celsius Network, Voyager Digital, and Three Arrows Capital. Due to liquidity issues, a number of exchanges have temporarily stopped operating their trading platforms.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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