Crypto lender Vauld’s creditors to receive payback soon, firm owes over $400 million


  • Singapore-based crypto lending platform Vauld’s payback scheme has been approved and creditors could receive payback soon. 
  • Over 90% of the creditors who participated voted in favor of the payback scheme. 
  • Creditors' INR balances will likely be paid out within the next four to six weeks.

Vauld, a Singapore-based crypto lender and exchange, is in preparation to pay back INR balances to creditors by August 2023. The exchange’s payback scheme was approved by 91.85% of creditors and the platform is likely to start paying creditors back soon.

The lender proposed paying creditors back in excess of 100%, offering a better outcome than liquidation.

Also read: Deutsche Bank applies for crypto custody license

How Vauld ended up with $400 million debt to creditors

The crypto lender backed by several noteworthy investors including Peter Thiel’s Valar Ventures, Pantera Capital and Coinbase Ventures halted operations on July 4, 2022.

The exchange cited financial difficulties and volatile market conditions when faced with mass withdrawals by users. Vauld then filed for protection against creditors and lawsuits in a Singapore court, and came up with a restructuring plan to pay back its debt. 

Vauld offers different payback tracks to creditors, prepares for INR returns

In its detailed restructuring plan’s Q&A section, the lender explains that creditors with INR balances are creditors of Flipvolt and not Vauld. These creditors are not bound by the payback scheme. However, the exchange proposed that INR balances be paid out in full, using Flipvolt’s assets. 

In its Telegram community, Vauld’s representatives have acknowledged that INR creditors will receive their funds within the next four to six weeks. The Q&A document also states that creditors with INR balances will have the option to invest, as new money, in the DeFi strategies offered by Vauld’s “New Business.” 

Crypto Hanuman, a crypto influencer and Vauld community member, reported that the Singapore-based firm has plans to restart its operations with a DeFi yield-generating platform under new management. This plan is pending a sanction from the Singapore court and this is likely the DeFi strategy where INR creditors could reinvest their funds.

Results from Vauld’s invitation to creditors for a vote on payback scheme

According to the official announcement by Vauld’s representatives on the Telegram group, the lender conducted a vote between May 31 and June 8, where 6,721 valid votes were cast. These votes represented creditors owed $253.13 million in approved claims and the payback scheme proposed by the exchange was approved by a large majority (91.85% voters by count).

The details of the scheme can be found here.

Payback for other creditors of Vauld

According to the source, 91.85% of Vauld’s creditors participated in the voting process and favored the proposed plan to return funds. Vauld has explained that DeFi payment creditors are likely to recover 38% to 49% of their claims. A 100% recovery is not likely under any circumstances.

Vauld told FXStreet that once the scheme is approved by the Singapore Court, the repayment process will begin. Further, the exchange’s representative confirmed that an approval on the payback scheme would imply creditors will receive their INR back by August 2023.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound

Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound

Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.

More Cryptocurrencies News
US SEC may declare XRP a 'commodity' as Ripple settlement talks begins

US SEC may declare XRP a 'commodity' as Ripple settlement talks begins

The US SEC is considering declaring XRP as a commodity in the ongoing settlement talks with Ripple Labs. FOX News reports suggest Ethereum's regulatory status remains a key reference for XRP’s litigation verdict.

More Ripple News
Cardano Price Prediction: ADA could hit $0.50 despite high probability of US Fed rate pause

Cardano Price Prediction: ADA could hit $0.50 despite high probability of US Fed rate pause

Cardano price stabilized above $0.70 after posting another 5% decline in its 3rd consecutive losing day. Multiple ADA derivatives trading signals are leaning bullish, but the US trade war impact outweighs the positive shift in inflation indices. 

More Cardano News
Stablecoin regulatory bill receives green light during Banking Committee hearing

Stablecoin regulatory bill receives green light during Banking Committee hearing

The US Senate Banking Committee voted on Thursday to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to establish proper regulations for stablecoin payments in the country.

More Cryptocurrencies News
Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation

Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation

Bitcoin price remained constrained within a tight 8% channel between $76,000 and $84,472 this week. With conflicting market catalysts preventing prolonged directional swings, here are key factors that moved BTC prices this week, as well as key indicators to watch in the weeks ahead. 

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP