• Vauld, a Singapore-based crypto exchange, has been granted permission to restructure their board by a court.
• The company had frozen withdrawal options in July 2022 and was subject to various legal proceedings since August 2022.
• The new top management will lead the company’s bailout process and creditors are owed around $400 million.
Vauld Crypto Exchange Granted Permission For Board Restructuring
The Singapore-based crypto exchange Vauld has been granted permission from the court to restructure its board. On Aug. 24, Vauld co-founder Darshan Bathija revealed on X (formerly Twitter) that the company got its scheme of arrangement passed in a Singapore court.
What Led To This Situation?
In August 2022, Indian law enforcement seized $46.4 million from the Indian branch of Vauld, Flipvolt Technologies, due to allegations of money laundering. In July 2022, Vauld froze withdrawal options citing unfavorable market conditions and a two-week “bank run” costing $200 million worth of withdrawals.
Details Of The Restructuring Plan
The restructuring plan suggests an acquisition by Swiss crypto lender Nexo, however negotiations stopped in January 2023. The scheme of arrangement passed in the Singapore court replaces the current board with a new CEO, creditor representative and scheme manager.
Creditors Owed Around $400 Million
Vauld owes its creditors around $400 million which consists mainly of individual depositors’ money.
Know Your Customer Checks Resumed
The platform also resumed the Know Your Customer checks for existing customers who now have to resubmit their verification documents.