Singapore-based crypto platform Vauld has informed investors about a shortage of 70 million USD to cover its obligations, according to Indian media. Defi Payments, the founder of the cryptocurrency platform, has filed an application with the Singapore court for a six-month moratorium on debt repayment, its message says.
Vauld has assets worth about 330 million USD and liabilities worth about 400 million USD, the article notes. Also, a significant part of the platform's assets are placed in loans for a period of 3 to 11 months, which cannot be withdrawn ahead of time.
The main factors that caused the difference of 70 million USD between assets and liabilities, the company calls losses when trading BTC, ETH and MATIC, as well as the collapse of the UST stablecoin. The representative of Vauld stressed that the company is not closing, but is asking for time to develop a restructuring strategy.
On July 4, Vauld suspended the withdrawal of funds, trading and placement of deposits on the platform. Vauld was founded in 2019 and was previously known as Bank of Hodlers.