Vauld, a Singapore-based crypto exchange, that has been ongoing bankruptcy proceedings since August 2022, has said that it received permission from the court to restructure its board. The new top management will lead the company’s bailout process.
On Aug. 24, Vauld’s co-founder Darshan Bathija revealed on X (former Twitter), that the company got its scheme of arrangement passed in 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 (KYC) 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.
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 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 a Swiss-headquartered crypto lender Nexo, but in January 2023 Nexo’s office was raided by law enforcement and 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.