Troubled Crypto Lending Platform Vauld Discloses $70M Shortfall Plus CFO Resignation

Vauld, a troubled crypto lender, disclosed to creditors an overall shortfall of around $70 million in a letter on Monday, according to The Block. This announcement comes several hours after The Block reported Vauld’s CFO Jatin Mazalcar resigned from his role, but remains as a consultant to the company. 

In the letter, Vauld claimed they have assets worth around $330 million and liabilities worth about $400 million, creating that $70 million deficit. However these figures aren’t final as Vauld is currently undergoing forensic and financial audits. 

In addition, Vauld noted their parent company Defi Payments filed for a moratorium on July 8 in Singapore as previously planned. 

These announcements come a week after Vauld suspended withdrawals on the platform, citing volatile market conditions, financial difficulties of their key business partners and the current market climate. 

In addition, the firm mentioned their shortfall came from mark-to-market losses on Bitcoin, Ether and Polygon. Mark-to-market losses are generated through an accounting method rather than the actual sale of a security. 

After the halt on withdrawals on July 4, Vauld announced the following day that its UK-based rival Nexo signed a term sheet with the firm for a potential acquisition. Nexo is currently conducting a due diligence process before potentially finalizing the acquisition. 

Vauld also mentioned to customers that if the Nexo deal falls through, they still have other options to make their platform and customers’ funds whole again. 

Vauld is a Singapore-based platform founded in 2018 and backed by high-profile investors including Peter Thiel’s Valar Ventures and Coinbase Ventures.  

Author: Tyler Irvin

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