Crypto lender Vauld, which halted withdrawals earlier this month, is facing hostile action from multiple creditors, according to a new affidavit reviewed by Moneycontrol.
See related article: Nexo in talks to buy out Vauld
Fast facts
- As per the affidavit, Vauld has received two demand letters and two civil claims from four creditors.
- One of the letters demanded US$340,000 in payment plus interest from Vauld, while the claim amounts of the other creditors were not mentioned in the affidavit.
- The lender owes US$402 million to creditors, of which, US$363 million belongs to individual retail investors.
- In Vauld’s first affidavit, there was no mention of creditor action against the firm, except letters of claims from investors totaling up to US$2 million.
- Vauld filed for a moratorium against its creditors in the Singapore High Court on July 8 to restructure its debt and consider a buyout deal from Nexo, and is seeking an extension on the moratorium for six months.
- Creditor support is one of the factors on which the court may grant the moratorium, which is set to be decided in a hearing on Aug. 1 — 78.3% of Vauld creditors who responded with their views to Vauld support the moratorium, while 6.5% are against it.
See related article: Vauld halts withdrawals, trading, deposits; explores restructuring