A troubled cryptocurrency lending platform known as Vauld has been granted an additional term of creditor protection by a Singapore court. Before February 28, the company must design a strategy for its return.

According to a story published by Bloomberg on Jan. 17, Vauld has been given more than a month to wrap up talks with one of two digital asset fund managers to take over executive management of the tokens that are trapped on its platform. . It would appear that the argument put forward by the corporation that the discussions had progressed to an advanced level was enough to convince the high court of Singapore.

The site stopped processing withdrawals for its 800,000 customers in July 2022, citing poor market circumstances and an unusual number of withdrawals totaling $200 million in less than two weeks as the reasons for the decision.

It was previously given a three-month moratorium to prepare a restructuring plan for the firm and offer a better result for its creditors in August 2022. This was done in order to avoid bankruptcy for the company. At the time, the court rejected the company’s request for a six-month protection period, expressing fears that a longer moratorium would not be adequately monitored and monitored. The judge’s decision remains in effect.

As soon as the first moratorium went into effect, it became public that Nexo, a Swiss-based cryptocurrency lender, was planning to buy Vauld along with all of its assets.

However, once Nexo’s Bulgarian office was searched by authorities, Vauld denied that such a transaction could ever take place.

In August 2022, major Singapore-based platform Zipmex was given a three-month ban so it could resolve liquidity issues.

The future of cryptocurrency lending in the nation is still unknown due to a proposal by Singapore’s central bank to ban digital payment token service providers from extending any lines of credit to customers. This proposal would apply to both fiat and cryptocurrency loans.