Crypto lending startup Vauld requests a 6-month moratorium, reporting $400 million in liabilities
- ByStartupStory | July 12, 2022
Vauld, a crypto lending platform, has requested a six-month moratorium to prepare for the company’s intended restructure. In a statement, Vauld also stated that the moratorium was requested “to prohibit, amongst other things, any order as well as resolution to wind up Defi Payments, and also the beginning or continuation of any actions against Defi Payments for six months.” The beleaguered Singapore-based startup’s parent firm is Defi Payments.
Bathija informed investors that the company’s assets and liabilities were incompatible. Bathija attributed the disparity to the startup’s mounting losses as a result of its exposure to the TerraUSD drop as well as a slump in other significant cryptocurrencies such as Bitcoin & Ethereum.
Bathija also stated that the company was in talks with Nexo about prospective restructuring alternatives, particularly acquisition. “At this point, the Vauld Group continues to have negotiations with Nexo Inc as Nexo Inc does its due diligence, as well as examines various restructuring options that would best safeguard the Vauld Group’s stakeholders,” Vauld said in a statement.
This comes on the same day that Bathija was cited as suggesting that crypto lending platform customers will continue to receive interest on existing fixed crypto deposits. The firm cut off 30% of its workers earlier this month and then halted withdrawals, trading, including deposits on its platform in July.
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