Compact crypto lending platform Vald gets one more term of lender protection from a Singapore court. The company must come up with a restructuring plan before February 28.
On January 17, Bloomberg reported that Vald has been given more than a month to close negotiations with two digital asset fund managers to take over executive control of the tokens attached to the platform. Apparently, the Singapore High Court was satisfied with the company’s case that the negotiations had reached an “advanced stage”.
In the year In July 2022, the platform faced unfavorable market conditions for its 800,000 customers and an unprecedented $200 million withdrawal in less than two weeks. In August, a three-month moratorium was granted to plan the restructuring of the business and provide better results to creditors. At the time, the judge rejected the company’s request for a six-month waiting period, citing concerns that a longer time frame “would not provide sufficient oversight and oversight.”
From the beginning of the first block, it was known that Nexo, the Swiss-headquartered crypto lender, intended to acquire Vold for all of its assets. However, after Nexo’s own office in Bulgaria was raided by prosecutors, Vald dismissed the possibility of such a deal.
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This is not the first time that Singaporean authorities have shown their willingness to allow troubled crypto companies to fix their problems. Another major Singapore-based platform, Zipmax, was given a three-month deadline in August to resolve liquidity issues.
However, the fate of crypto loans in the country remains unclear as Singapore’s central bank has banned digital payment token service providers from offering “any credit facility” to consumers, including fiat and cryptocurrencies.