Coinbase-backed crypto lending platform Vauld will now replace its current board with a new CEO, a creditor representative, and a scheme manager in a new hearing from Singapore courts, to oversee the ongoing activities to restructure the business and bailout creditors.
Vauld had suspended it operations in July last year, citing financial difficulties and challenging market environment. Since then, amid ongoing proceedings in the Singapore courts and increasing distrust among creditors awaiting bailout, it had set up a committee of creditors (CoC) to help creditors without legal representation and take their feedback during business restructuring process.
Now in a latest tweet on August 24, Darshan Bathija, co-founder and CEO of Vauld, 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.”
Whether the CoC and even the founding team will continue to be a part of the startup post this order is not clear yet.
Background
Vauld was founded in 2018 by Bhatija and Sanju Soni Kurian. Headquartered in Singapore, most of its workforce was based in India. The exchange is backed by Valar Ventures- a firm co-founded by PayPal founder Peter Thiel, Pantera Capital, Coinbase Ventures, CMT Digital, Gumi Cryptos, Robert Leshner, and Cadenza Capital.
At present, Vauld has assets worth around $330 million and liabilities worth $400 million. On August 13 2022, Enforcement Directorate had frozen the startup’s bank balances, payment gateway balances, and crypto balances worth Rs 370 crore for allegedly assisting predatory lending apps.
It was earlier also in talks to be acquired by London-based crypto lender Nexo, which was called off in December after Nexo allegedly failed to respond to Vauld’s due diligence queries.
Meanwhile, Indian crypto ecosystem peers such as CoinDCX and Chingari continue to see troubled times too. CoinDCX this week laid off around 12 percent (estimated to be about 70-80 employees) of its workforce, while Chingari laid off 50 percent of its staff as per media reports.
CoinDCX cited changing business priorities and Chingari is going through funding crunch.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
