Crypto lender Vauld seeks protection against creditors: Report

cointelegraph.com:

Singapore crypto exchange Vauld Group is seeking a moratorium against its creditors — a move that would give the troubled lender more time to restructure its business after collapsing asset prices halted operations earlier this month.

Vauld filed an application in Singapore on July 8 seeking a moratorium order, The Wall Street Journal reported Wednesday. If granted, the moratorium would provide the distressed lender more time to seek out a proper restructuring plan.

The Journal described a Singaporean moratorium order as similar to Chapter 11 bankruptcy in the United States, although the moratorium helps the company avoid complete closure.

Vauld issued a statement on July 11 informing the public that it would pursue a moratorium order to give management “the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders.” However, as the Journal reported, the moratorium application was filed three days prior.

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On July 4, Vauld suspended deposits, withdrawals and trading due to adverse market conditions, capping off a volatile three-week stretch in which customers tried to withdraw nearly $198 million from the platform. Around the same time that the platform was experiencing a run on assets, CEO Darshan Bathija announced that Vauld would be cutting 30% of its staff.

We've taken the painful decision to reduce Vauld's headcount by about 30%More information: https://t.co/gD7epuXuvo

The collapse of the Terra ecosystem in May exposed the crypto industry’s over-leveraged players, resulting in the high-profile bankruptcies of Celsius Network, Voyager Digital and Three Arrows Capital. Several exchanges have