Peter Thiel-backed cryptocurrency lender Vauld has filed for protection from its Singaporean creditors just days after suspending withdrawals from its platform.

According to a recent blog post, the company filed the paperwork on July 8. “The management has decided that, in light of the current circumstances, it would be in the best interests of all stakeholders (including creditors) to file the Application for a moratorium order … This is so as to give Defi Payments [its Singapore entity] and the Vauld management the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders.”

Vauld says it continues to be in talks with Nexo, which earlier in July inked a term sheet with Vauld for a possible purchase, subject to a 60-day due diligence period.

The crypto lender – which counts Peter Thiel, Pantera Capital, and Coinbase Ventures among its investors – owes $402 million to its creditors, with 90% of that debt originating from individual retail investor deposits, a July 8 affidavit filed by Vauld co-founder and CEO Darshan Bathija revealed.

A Singaporean moratorium order is similar to an American Chapter 11 bankruptcy filing, with both proceedings allowing companies to avoid liquidations and continue operations.

Nexo revealed late last month that it had been working with banking giant Citigroup (C) to consolidate other crypto lenders slammed by the recent market downturn. The company was reportedly eyeing Vauld as it mapped out a potential expansion of its presence in Asia.