Cryptocurrency exchange Vauld files for bankruptcy
The company is exploring “potential restructuring options” and do not intend to shut down.
Cryptocurrency exchange Vauld filed the application for a moratorium order for protection against its creditors in the Singapore Courts.
The management explain that the bankruptcy petition comes “in the best interests of all stakeholders” as to give “the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders. At this time, the Vauld Group continues to have discussions with Nexo Inc whilst Nexo Inc carries out is due diligence, and also explore potential restructuring options that would best protect the interests of the Vauld Group’s stakeholders.”
The decision comes after the lending firm unsuccessfully attempted to implement an out-of-court restructuring by cutting 30% of its workforce and suspending deposits, withdrawals and trading.
Vauld was suffering “customer withdrawals in excess of a $197.7 m since 12 June 2022 when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.”
Days after suspending all withdrawals, Vauld's CEO and co-founder, Darshan Bathija revealed that rival cryptocurrency lender Nexo is in talks to acquire “up to 100%” of Vauld.