After the suspension of operations, the volume of unpaid debts of crypto lending platform Vauld was $ 402 million. Such estimates are contained in Singapore court documents at The Block’s disposal.

$363 million of this amount comes from retail investors. The company did not refund more than $34 million to one of them and $10 million to three of them.

The top 20 creditors are entitled to claim $125 million in refunds.

In the publication, we remind you that in the event of bankruptcy, unsecured creditors are next in line after priority creditors and secured creditors.

The second category includes “Contractor 1” and FTX Trading Ltd, which are more likely to fully recover their $35 million and $4.1 million respectively.

As of the reporting date, Vauld’s assets were $287.7 million. The platform’s co-founder and CEO, Darshan Batija, noted that the amount does not include ~$70 million in bank accounts.

Vauld’s problems began with the collapse of Terra – the firm held the equivalent of $28 million in UST stock. The next blow was the general decline of the crypto market – Vauld took positions in Bitcoin, Ethereum, Matic and XRP. The third factor in the loss of financial stability was the defaults of some counterparties, resulting in sunk losses of ~$1.7 million.

“Some borrowers who borrowed cryptocurrencies without collateral failed” says document.

The fourth reason for the bankruptcy was the Alfa Romeo Formula 1 stable and spending on sponsorship deals with the club. Premier League Crystal Palace is worth $6 million.

Platform opened offices in Singapore, India, USA, UK, Turkey, Lithuania, Ireland and Seychelles. The failure of the latter resulted in a loss of $4.5 million in August 2021.

The platform team has requested a six-month moratorium on transactions. Under Singapore law, such a privilege is automatically granted for 30 days from the date of application (this happened on July 8).

The first hearing of the case will be held on 1 August.

In addition to selling the platform, restructuring options include raising venture capital, converting debt to equity, issuing your own token, and developing a future income-linked payment plan.

Recall that the management announced the preparations for the restructuring of operations on July 4th.

On July 5, the Nexo crypto lending platform launched its Due Diligence procedure for a period of 60 days, as a result of which it can confirm its intention to take over a competitor.

Earlier, Mike Novogratz compared industry participants to “a bunch of idiots.”

Three Arrows Capital owed $3.5 billion.

Prior to that, Celsius Network reported a “hole” in the balance of $1.2 billion.

Voyager Digital’s estimated liabilities can range from $1 billion to $10 billion.

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