Lending platform Vauld reveals $70 million funding gap! Delayed repayment requests, CFO has resigned

Singapore-based lending platform Vauld announced on 7/4 that it is suspending user withdrawals, trading, and deposits due to financial difficulties. Today, it was reported that the company currently has a $70 million funding gap, and the CFO Jatin Mazalcar resigned last week.

Vauld Fund Shortfall

According to the foreign media The Block's report, Vauld disclosed its financial situation in a letter to creditors, stating that its current asset value is approximately $330 million, while its liability value is about $400 million, resulting in an overall shortfall of $70 million. However, Vauld is currently undergoing legal and financial audits, so the final figures may vary.

Vauld attributed the fund loss to the market price decline of BTC, ETH, MATIC, and the collapse of UST.

"We also have an issue with mismatched asset holding periods, with a significant proportion of our managed assets AUM allocated to loans that will mature in the future within 3-11 months and cannot be redeemed early." Vauld stated.

Following reports of financial difficulties at Vauld, Nexo, another lending platform, has expressed interest in acquiring it, but the acquisition is currently in an exploratory phase. Vauld mentioned that if the transaction does not proceed smoothly, they have several backup plans in place to safeguard their clients.

These plans include raising more venture capital, exploring alternative options besides acquisition, waiting for the return of some deployed capital, converting debt to equity, or issuing tokens and devising payment plans linked to future revenues.

Vauld Applies for Payment Extension

As revealed in the letter, following the announcement of withdrawal suspensions by Vauld, its Singapore entity Defi Payments Pte Ltd has applied to the Singapore court for a payment extension under Section 64 of the Insolvency, Restructuring and Dissolution Act 2018. If approved, Vauld will have one month to devise a solution.

Furthermore, Vauld's CFO Jatin Mazalcar has resigned from his position and currently serves only in an advisory capacity.