The Singapore High Court has granted bankrupt crypto exchange Vauld until March 24, 2023, to develop a new plan to reimburse creditors after its acquisition deal with Nexo fell through.

The ruling comes after the firm had originally sought an extension of its Feb. 28, 2023 deadline to April 28, 2023.

According to an earlier affidavit, the firm said its funds could be distributed to creditors during a winding down process.

Vauld also confirmed that it scrapped a deal to be acquired by Nexo after the latter allegedly didn’t prove solvency. The exchange has also requested the Court’s permission to call up a creditor meeting to discuss its latest plans. The plan includes the possible distribution of funds to creditors during a winding-down process. If the plan is approved, the exchange anticipates implementations in June and July 2023.

The moratorium extension follows a failed agreement by lender Nexo to buy the firm’s assets. Nexo had initially signed a term sheet to acquire Vauld. Talks fell through after the lender failed to produce adequate financial information proving it was solvent.

A group of creditors recently filed an affidavit against Vauld for censoring communications with creditors and pursuing undesired remedial actions. Vauld reportedly owes them over $2.2 million.

Vauld paused withdrawals and trading in July 2022 after the collapse of other prominent firms in months prior. It filed for the Singapore equivalent of U.S. Chapter 11 on July 8, 2022. It reportedly owes its creditors, including retail investors, over $400 million.

Recently, Nexo co-founder Antoni Trenchev called allegations of fraud, money laundering, and terrorism against Nexo employees “ludicrous,” after police conducted over 15 raids in Bulgaria’s capital Sofia last month. The firm claimed it was being targeted for its pro-Ukraine stance at the time and said it had a 30-plus team committed to KYC.

After the beginning of the horrible war in Ukraine, the first order of business was to help fundraise for those affected https://t.co/VIceWt9y6j
The second was, of course, to comply with the sanctions, and Nexo took one of the most aggressive approaches here. 5/

“They’re grasping for straws to make the charges stick,” he insisted in a Bloomberg interview last week.

He also denied speculation that political alliances from his time in Bulgarian politics could assist him.

“I have mostly lost my nucleus to Bulgaria. Ever since we started Nexo,we deliberately chose not to offer our products and services…I do not have any [political] backchannels,” he said.

Nexo began its exit from the U.S. market in December last year, phasing out its Earn Interest Product in seven states, but the U.S. Securities and Exchange Commission ordered it to completely halt the offering in January 2023. The firm settled with the SEC and state regulators for $45 million and complied with the cease-and-desist order without admitting or denying guilt.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

The post Vauld Secures Moratorium Extension as Creditors Grow Impatient appeared first on BeInCrypto.

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