Singapore-based crypto platform Vauld has been granted a three-month moratorium until November 7 by the Singapore High Court to halt its creditors from starting or continuing any legal proceedings against it, according to a report by The Block.

This would give Vauld some breathing room to restructure its business and hammer out its acquisition deal with Nexo, a Zug-based digital assets institution.

Vauld was also ordered by the court to form a creditors committee. The crypto lender reportedly owes a total of US$402 million to its creditors. 90% of this, which amounts to US$363 million, is from individual retail investors’ deposits.

Nexo had signed an indicative term sheet that grants its a 60-day exclusive exploratory period, which will end on 4 September 2022, to complete the due diligence process.

Earlier in July, the embattled crypto firm was forced to suspend all withdrawals, trading and deposits on its platform.

Vauld explained on its updated FAQ website that it had experienced significant pressure on liquidity from 12 June 2022, when Celsius announced that it would pause all withdrawals.

There were net withdrawals by Vauld customers of approximately US$56 million on the day following the announcement.

Vauld is currently not licensed by MAS nor has it sought any exemption from holding a license under the Payment Services Act. It has, however, submitted a license application which is pending review.

Featured image edited based on photo by Rap Dela Rea via Unsplash