Vauld stuck with $70mn deficit; CEO says interest on crypto holdings to continue
The cryptocurrency lending platform claims to have $330 million in assets against a current liability of $400 million.
- Jul 12, 2022,
- Updated Jul 12, 2022 12:57 PM IST
Vauld, the Indian cryptocurrency lending platform facing financial trouble, has applied for a six-month moratorium for restructuring as it is $70 million short for paying off its debts.
Despite its current inability to pay off its liability, CEO Darshan Bhatija has promised existing customers that they would continue to keep earning interest on their holdings, which are currently locked up on the exchange. The platform claims to have $330 million in assets against a current liability of $400 million.
Bathija explained the discrepancy as a result of its exposure to the TerraUSD crash as well as a plunge in value of other key cryptocurrencies like Bitcoin and Ethereum.
Vauld revealed in a statement that the moratorium was requested to block any order to wind up the platform as well as any proceedings against them for a period of six months.
In a blog posted on the exchange’s official website last week, Bathija broke the news that due to financial challenges, the crypto exchange is suspending all trading, deposits, and withdrawals.
Last month, the exchange also let go of 30 per cent of its non-tech employees, blaming the general economic downturn.
Also Read: ED seizes assets worth Rs 14 crore in Morris Coin crypto scam - BusinessToday
Also Read: Will 1% TDS affect crypto trading volumes? Further dip likely, suggest exchanges - BusinessToday
Vauld, the Indian cryptocurrency lending platform facing financial trouble, has applied for a six-month moratorium for restructuring as it is $70 million short for paying off its debts.
Despite its current inability to pay off its liability, CEO Darshan Bhatija has promised existing customers that they would continue to keep earning interest on their holdings, which are currently locked up on the exchange. The platform claims to have $330 million in assets against a current liability of $400 million.
Bathija explained the discrepancy as a result of its exposure to the TerraUSD crash as well as a plunge in value of other key cryptocurrencies like Bitcoin and Ethereum.
Vauld revealed in a statement that the moratorium was requested to block any order to wind up the platform as well as any proceedings against them for a period of six months.
In a blog posted on the exchange’s official website last week, Bathija broke the news that due to financial challenges, the crypto exchange is suspending all trading, deposits, and withdrawals.
Last month, the exchange also let go of 30 per cent of its non-tech employees, blaming the general economic downturn.
Also Read: ED seizes assets worth Rs 14 crore in Morris Coin crypto scam - BusinessToday
Also Read: Will 1% TDS affect crypto trading volumes? Further dip likely, suggest exchanges - BusinessToday