Vauld, the problematic Singapore-based cryptocurrency lender that shut down trading and withdrawals from the platform in early July, owes creditors US $402 million, according to The Block. According to an affidavit submitted by Darshan Bathija, the firm’s co-founder and CEO, it owes US $363 million to just retail investors.
This information was released after UK-based Nexo agreed to buy Vauld’s assets in a term sheet earlier this month. Currently, the London-based company is in its 60-day exploring phase before deciding whether to close the acquisition or not. Vauld just submitted a moratorium request.
While the value of Vauld’s total assets is stated to be US $287.7 million, Bathija asserted that the business truly has US $330 million in assets since “bank balances” haven’t been taken into account.
Coinbase-backed The Terra meltdown in May, which had an impact on the rest of the crypto market, was blamed by Vauld for the collapse of the company. Debtors on the platform missed their loan payments as a result. In addition, the company lost money on millions it spent on football teams’ sponsorships.