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The Boxed-Up Crypto Lender Vauld Granted a Three-Month Window 

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  • Crypto Lender Vauld granted three months protection from creditors
  • Vauld holds assets worth 300 Million USD and liabilities worth 400 Million USD
  • Vauld going through a rigorous reengineering process 

A Slight Breakthrough for Vauld

The Crypto lender – Vauld – backed by Peter Thiel and Coinbase, was given a temporary prohibition on August 1st by Justice Aedit Abdullah lasting November 7th. The move will offer a slight break to the crypto lender whose 147,000 creditors will be prohibited to file any legal action against them. 

Amid the CryptoWinter effects on the cryptocurrency market, Vauld paused their operations in order to restructure the organization. Vauld holds 300 Million USD as assets and 400 Millions as liabilities as of now. The company is making subtle changes in various areas such as shortening the workforce, reshaping the marketing strategies, and framing new financial goals.

The CEO and Co-founder, Darshan Bathija said the company has 400 Million USD in liabilities. The court, to Bathija’s statement, stated that Vauld must provide a completely transparent detailed document of financial transactions – cash flow and asset valuation details. 

An Optimistic Approach – Vauld’s Move

However, the lawyers from Vauld are requesting for a slightly longer time window of six months to restructure the organization from the grass-root level. Also, the lawyers raised a request for a time slot to perform due diligence by Nexo. The court approved the extension of three months considering the request from the attorney team at Vauld. 

Antoni Trenchev –  co-founder and managing partner at Nexo – commented on Vauld’s optimistic behavior. However he added saying we necessarily have to understand the liabilities, the receivables, the counterparties, and the prospects of the receivables. 

The Unrealistic Yields 

Taking the facts into consideration, Vauld was among one of the companies promising unrealistic yields – 13% in the case. However, the spark diminished with the end of Terraforms Labs in the month of May. In one of the blogs from Vauld they explained how they converted the fiat-backed stablecoins into higher yield stablecoins. 

The company is finally granted a three month window from the creditors to Vauld. But, the creditors are still in a dilemmatic situation to decide on what Vauld will bring up in the next three months. After an optimistic step of reengineering the firm from all the aspects, who knows what the company may get capable of doing. 

Nancy J. Allen

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