Vauld, a Singapore-based cryptocurrency lending and exchange platform, owes a total of $402 million to its creditors, as reported The block.
Of that amount, $363 million, or about 90%, was allegedly deposited by retail investors, according to a document filed with the Singapore High Court on July 8 by Vauld CEO Darshan Bathija and shared with clients. from the company in an email on July 18.
Vauld’s largest individual creditor is owed $34 million.
The company also owes a total of $125 million to its 20 largest unsecured creditors, as well as $35 million to an anonymous secured creditor.
Another secured creditor is FTXTrading Ltd, the crypto exchange founded by Sam Bankman-Fried, which owes $4.1 million.
Per court documents, affidavit, Vauld has $287.7 million in various exhibits, including Bitcoin, Ethereum and XRP. The company’s actual total assets, however, amount to approximately $330 million, as the affidavit does not include bank balances. That means a shortfall of about $70 million, disclosed by the company in a separate report.
Vauld seeks investor protection
Vauld, which is backed by several notable investors including Peter Thiel’s Valar Ventures, Pantera Capital and Coinbase Ventures, halted operations on July 4, citing financial difficulties amid volatile market conditions.
In a blog post last week, the company also revealed that it had filed for protection from creditors and lawsuits in a Singapore court, which is supposed to give it the “breathing room” needed to prepare for the planned restructuring.
In the meantime, we have taken the difficult decision to suspend all withdrawals, transactions and deposits on the Vauld platform with immediate effect.
A Singaporean moratorium order is “generally similar in concept to Chapter 11 bankruptcy” of the US Bankruptcy Code, as it allows the business to avoid a complete cessation of business and liquidation of assets while it tries to “reach an agreement or settlement with its creditors”. , seek new sources of funding or restructure its business,” said Yuankai Lin, Partner at RPC Premier Law. The Wall Street Journal.
Meanwhile, Vauld continues to have discussions with crypto lending firm Nexo, which earlier this month announced plans to acquire the company pending a 60-day due diligence window.
“Our most important task now is to test whether a Nexo-led overhaul can see the business thrive again and whether it can be profitable within our business model and corporate culture,” said Antoni Trenchev. , managing partner of Nexo. Decrypt at the time.
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