Darshan Bathija – Chief Executive Officer of the cryptocurrency lending platform Vauld – revealed that the entity will implement several amendments, including appointing a new CEO.
The bear market has significantly affected the Singapore-based company, which laid off a substantial chunk of its workforce in 2022 and suspended withdrawals and deposits. The problems did not end there, and Vauld filed for protection against creditors in July last year.
What’s New Around Vauld?
Bathija – co-founder and current CEO of Vauld – took it to X (formerly known as Twitter) to disclose that another person will replace him at the helm of the crypto lender. A new creditor representative and a scheme manager will also join the distressed organization. In addition, the exec said the Singaporean magistrates approved Vauld’s scheme of arrangement.
Vauld (Defi Payments Pte Ltd) got its scheme of arrangement passed in Singapore courts.
As part of the scheme, the current board will be replaced with a new CEO, a creditor representative, and a scheme manager.
Customers are currently re-submitting their KYC information. More…
— Darshan Bathija (@darshanbathija) August 24, 2023
The Coinbase-backed firm hinted about severe disruptions in its operations last June when it dismissed 30% of its employees. It halted withdrawals and transactions two weeks later.
“In the meantime, we have made the difficult decision to suspend all withdrawals, trading, and deposits on the Vauld platform with immediate effect. We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors,” the team behind the crypto lender announced at the time.
The company, which had assets worth around $330 million and liabilities topping $400 million, had until April 28 to introduce a revival plan after filing for creditor protection. Some crypto participants and X users have assumed that the platform might start repaying affected users this summer.
The Terminated Deal With Nexo
As CryptoPotato reported last year, the cryptocurrency lender – Nexo – displayed ambitions to purchase Vauld. The entities signed a 60-day exclusive exploratory period focused on the acquisition.
“Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions,” CEO Bathija commented at the time.
Several months later, though, Vauld rejected the proposal, saying the potential agreement would not be in the best interests of its debtors. It is worth mentioning that Nexo experienced some issues at the beginning of 2023, having its offices in Bulgaria raided by the police.
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