Creditors Take Hostile Action as Crypto Firm Vauld Seeks Bankruptcy Protection

Crypto lender Vauld, which halted withdrawals earlier this month, is facing hostile action from multiple creditors, according to a new affidavit reviewed by Moneycontrol. As per the affidavit, Vauld has received two demand letters and two civil claims from four creditors. One of the letters demanded $340,000 in payment plus interest from Vauld, while the claim amounts of the other creditors were not mentioned in the affidavit. The lender owes $402 million to creditors, of which, $363 million belongs to individual retail investors. In Vauld’s first affidavit, there was no mention of creditor action against the firm, except letters of claims from investors totaling up to $2 million. Vauld filed for a moratorium against its creditors in the Singapore High Court on July 8 to restructure its debt and consider a buyout deal from Nexo, and is seeking an extension on the moratorium for six months. Creditor support is one of the factors on which the court may grant the moratorium, which is set to be decided in a hearing on Aug. 1 — 78.3% of Vauld creditors who responded with their views to Vauld support the moratorium, while 6.5% are against it. Read more.
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