The restructuring of the corporation will be overseen by the new management.

The bulk of the company’s debtors are individual depositors, and are owed roughly $400M.

Singaporean cryptocurrency lender Vauld, which has been going through bankruptcy proceedings since August 2022, recently announced that it has been granted permission to reorganize its board. The restructuring of the corporation will be overseen by the new management.

Vauld’s co-founder Darshan Bathija announced on Twitter on August 24 that the firm had been successful in having a Singapore court approve their scheme of structure. A new chief executive officer, a creditor representative, and a scheme manager will join the board to implement the strategy.

Multiple Extensions

Existing clients of the platform will need to resubmit verification papers since Know Your Customer checks have been resumed. Flipvolt Technologies, Vauld’s Indian subsidiary, had $46.4 million in its possession when Indian authorities raided it for money laundering in August 2022.

Due to unfavorable market circumstances and a two-week “bank run” that lost $200 million. Vauld stopped client withdrawals in July 2022. The firm blamed losses on its exposure to the collapse of the stablecoin TerraUSD (UST) in May 2022. And the falling values of key cryptocurrencies.

A three-month reprieve was given in August 2022 so that it could come up with a strategy for reorganization. The strategy called for the company to be acquired by Swiss cryptocurrency lender Nexo, however talks with Nexo’s office stalled in January of 2023.

Moreover, a Singapore court granted Vauld more creditor protection that same month, and in February, that protection was extended. The bulk of the company’s debtors are individual depositors, and they are owed roughly $400 million.

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Filed under: Bitcoin - @ August 26, 2023 7:18 pm