Vauld achieves temporary protection from creditors

The High Court of Singapore has granted the cryptolending platform Vauld a moratorium on proceedings until November 72022 instead of the requested six months. Bloomberg writes about it.

According to the decision, 147,000 creditors will not be able to file claims against the company. The court did not rule out an extension depending on Vauld's progress in resolving the issues.

The platform must provide creditors with cash flow and asset valuation data within two weeks. Within eight weeks - information about the management of accounts.

On July 4, the crypto lending platform announcedsuspension of operations and possible restructuring due to financial difficulties. The next day it became known that rival Nexo had signed a preliminary takeover agreement with Vauld.

Later media citing court documentsfound that Vauld's outstanding debt after these events was $402 million, of which $363 million came from retail investors. The company did not return $34 million to one of them, and more than $10 million to three more.

Platform problems began with the collapse of Terra −she held the equivalent of $28 million in UST staking. The next blow was the general fall of the crypto market - Vauld took positions in Bitcoin, Ethereum, Matic and XRP.

The third factor in the loss of financial stabilitywere the defaults of some counterparties, which led to irretrievable losses of ~ $ 1.7 million. The fourth reason for the onset of bankruptcy was spending on sponsorship agreements.

How Celsius, 3AC and stETH problems will affect the price of Ethereum and the cryptocurrency market

Recall, the head of Galaxy Digital, Mike Novogratz, said that the collapse of the Terra ecosystem, the problems of Celsius Network, Voyager Digital and Three Arrows Capital made the entire industry look like a "bunch of idiots."

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