A cryptocurrency trading platform, Vauld, domiciled in Singapore, is currently making efforts to wriggle its way out of a huge debt owed to its numerous shareholders. This bankruptcy has already affected the fortunes of many investors.
Going by a publication that was made available this week, Vauld is indebted to the tune of 402 million USD. A huge chunk of 363 million USD, constituting 90% of the total amount, is made up of deposits from smaller investors.
According to excerpts of the information which was cited previously, 20 of its biggest stockholders are owed over 125 million USD and this is without collateral; at the same time, another is being owed 35 million USD with collateral. A large sum of almost 290 million USD is lodged in form of several digital coins (Ethereum, Ripple, Bitcoin, etc.).
Protection From Investors Litigation
Leveraging on its association with other remarkable crypto lenders, Vauld is putting a hold on much of its activities at the moment because of the uncertainties within the market. It is currently enjoying some form of protection from its investors after it secured a court injunction, restraining them from taking any action and all forms of litigation against the embattled firm. This is to allow the managers to have ample time to put things back on track.
Nexo, a company that provides similar services as Vauld, has indicated its desire to take over the ownership of the latter. To this end, negotiations are currently going on between the two. The whole idea is to see whether transferring the oversight of Vauld into new hands would revive its chances of rebounding. A two-month probation period has been set to determine this.
