Vauld, a Singapore-based crypto exchange that has been in ongoing bankruptcy proceedings since August 2022, has said that it had received permission from the court to restructure its board. The new top management will lead the company’s bailout process.
On Aug. 24, Vauld co-founder Darshan Bathija revealed on X (formerly Twitter) that the company got its scheme of arrangement passed in a Singapore court. According to the plan, the current board will be replaced with a new CEO, a creditor representative and a scheme manager.
The platform also resumed the Know Your Customer checks for existing customers, who now have to resubmit their verification documents. In August 2022, Indian law enforcement seized $46.4 million from the Indian branch of Vauld, Flipvolt Technologies, due to the allegations of money laundering.
Related: 3AC co-founder avoids contempt charges following evidence of Singaporean citizenship
Vauld froze the withdrawal option for their customers in July 2022, citing unfavorable market conditions and a two-week “bank run” costing $200 million worth of withdrawals. The company cited the losses relating to the declining prices of major cryptocurrencies and its exposure to the stablecoin TerraUSD (UST), which collapsed in May 2022.
In August 2022, it was granted a three-month moratorium to develop a restructuring plan. The plan suggested an acquisition by Swiss crypto lender Nexo, but in January 2023, Nexo’s office the negotiations stopped.
The same month, Vauld was given another period of creditor protection by a Singapore court, and in February, it was extended. The company owes its creditors around $400 million, the majority of which is individual depositors’ money.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Magazine: What do crypto exchanges really do with your money?