Tumbling crypto lending platform, Vauld has a liability of over $363 million to retail investors, according to the legal document leaked to the public.
On July 8, Vauld Co-founder and CEO Darshan Bathija filed an affidavit in the High Court of Singapore, which went public after the exchange shared it with its customers via email on July 18.
The filing states that Vauld has a total outstanding amount of $402 million against its creditors, 90% out of it, which is around $363 million belongs to individual retail investors’ deposits.
The document unmasked the fact that Vauld owes a total of $125 million to its 20 largest unsecured creditors. Except for one nameless “Party A”, all of them are individuals.
Also, only three creditors have claims of more than $10 million against Vauld, which includes the biggest claim of $34 million.
A mysterious “Counterparty 1” and well-known cryptocurrency exchange FTX Trading Ltd are two of Vauld’s two secured creditors, owing the company $35 million and $4.1 million, respectively.
However, in the priority list of creditors, unsecured creditors have been placed below secured and preferential creditors in an insolvency situation. Also, they have no security interest in any debtor asset.
Vauld halted its client withdrawal on July 4 amid the ongoing crypto market turmoil. On the very next day, its competitor NEXO commenced the process for possible acquisition of Vauld by signing a term sheet. The term sheet granted a 60-day exclusive exploratory period to conduct due diligence.
Against these liabilities, Vauld mentioned $287.7 million worth of assets in its holding. These assets include different cryptocurrencies including Bitcoin, Ether, and XRP.
However, Vauld CEO Bathija claims that the actual figure of the company’s assets is more than mentioned in the affidavit as it excludes “bank balances”. He claims that Vauld’s total asset worth is around $330 million.
This clearly implies Vauld shortfall of around $70 million, which was already declared earlier this month.
