The troubled Singapore-based cryptocurrency lender Vauld has received permission from the court to restructure its board. The lender will replace its board with a new CEO, a creditor representative and a scheme manager.
Vauld to Restructure its Board
Singapore-based crypto lender revealed that it received permission from the court to restructure its current board. On Thursday, Vauld co-founder Darshan Bathija said on X (the social media platform formerly known as Twitter) that the lender, which has been engaged in ongoing bankruptcy proceedings for over a year, received approval from a Singapore court for its scheme of arrangement.
Bathija said:
“Vauld (Defi Payments Pte Ltd) got its scheme of arrangement passed in Singapore courts. As part of the scheme, the current board will be replaced with a new CEO, a creditor representative, and a scheme manager. Customers are currently re-submitting their KYC information. More updates to follow in short order.”
As part of its restructuring, Vauld will replace its current boards with a creditor representative, scheme manager, and a new CEO. The lender further resumed KYC checks for its existing customers and has asked them to resubmit verification documents.
Creditors Finally Get Some Clarity Around Vauld’s Restructuring Plan
Vauld announced in July 2022 that it froze customer withdrawals and planned to restructure the company. Soon after it announced it halted withdrawals, India’s Enforcement Directorate (ED) froze the lender’s crypto and bank assets.
The embattled lender received an extension on its creditor protection after stating it needed more time to work on its restructuring plan. The company was granted an additional extension to its creditor protection, saying it required yet more time to work on its restructuring scheme.
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