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Vauld has been granted another mortarium extension from the Singapore High Court, after receiving its first in January.
The distressed crypto lender had until 28 February to explore options to tackle its financial woes, but it now has until 24 March.
Read more: Singapore Crypto Lender Vauld Receives Moratorium Extension
“This Restructuring Plan is contingent on the Restructuring being implemented only upon passing of a Scheme at a meeting of creditors to be convened by Defi Payments upon which all Creditors will be bound by the terms of the Scheme,” Vauld said in a statement shared by CryptoPotato.
Creditors filed an affidavit last week to prevent Vauld from filing another extension. The new affidavit with the Singapore High Court was filed by Jonathan Jeremy Edelman, authorized by creditors William Doerrfeld, Samuel Burton, Jeffrey Howerbush, and Brian Murray.
CryptoPotato reports that Vauld owes almost US$2.23 million to the four men.
Vauld's background
Founded in 2018, Vauld counts Peter Thiel, Pantera and Coinbase among its investors and has raised US$27 million in a Series A round.
The platform offered attractive interest rates for users on their cryptocurrencies, including 12.68% annual yields on staking several so-called stablecoins including USDC and BUSD and 6.7% on Bitcoin and Ethereum tokens.
However, in July, Vauld suspended all withdrawals, trading and deposits citing “financial challenges” at the firm. It then applied for a moratorium order in Singapore to create room for the restructuring process.
According to court documents, Vauld owed US$402 million to its creditors. 90% of the debt originated from individual retail investor deposits.
Vauld halted withdrawals after a wave of $200 million worth of withdrawals under two weeks hit the platform.
Read more: SG Based Vauld Rejects Nexo Acquisition… For Now
Vauld also signed an indicative term sheet with Swiss crypto lender Nexo for the latter to acquire up to 100% of the firm. However, it called off the acquisition in December, citing concerns over Nexo's financial health. Nexo's office in Sofia was raided by Bulgarian police as part of an investigation into suspected money laundering and tax crimes.
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