Everything you need to know about Vauld; number of customers, key investors, and the way forward  

Cryptocurrency exchange Vauld, which had halted deposits, trading, and withdrawals on its platforms, citing "financial difficulties" in the midst of the tumultuous phase in crypto markets; is in talks with Nexo for its 100 per cent acquisition, as BT reported earlier.  

But how many investors were using the exchange? Who were the other stakeholders? What would be the way forward, find out here: .  

The origins of Vauld  

Vauld, founded in 2018 by Darshan Bathija and Sanju Kurian, offered a range of services to cryptocurrency investors. It was initially called ‘The Bank of HODLers’.  

Apart from crypto investing, the exchange also offered fixed deposits and asset-backed lending and borrowing on its platform. The exchange had over 8,00,000 active investors on its platform.  

The exchange did not subscribe to traditional modes of marketing and advertising but chose to do the same via influencers. Akshat Shrivastava, a popular personal finance influencer used to often endorse the platform in his videos.   

What went wrong at Vauld?  

The Vauld management stated that the crypto company is facing serious financial issues because of the recent crypto crash and the resultant dip in retail interest.  

Vauld came on record to say that investors withdrew over $197 million since June 12, 2022.    

Who are the key investors in Vauld?  

The three-year-old startup has raised approximately $27 million from investors including Pantera Capital, Coinbase Ventures, and ace investor Peter Thiel's Valar Ventures.  

What does the future hold for Vauld?  

Vauld is in ongoing negotiations with Nexo, a crypto platform, for its 100 per cent acquisition. The company has also clarified that it would apply to the Singaporean courts for a moratorium. A moratorium is a suspension of any legal proceedings against the company which has applied for the same. This is so that the applicant has breathing room for the planned restructure.  

The company is also seeking help from external legal and financial advisors.    

Steps already taken to get back on track  

Vauld downsized its workforce by 30 per cent last month blaming the general economic downturn. Many speculations are being made that the exchange would reduce its headcount again but the exchange has not commented on the same.  

Moreover, the exchange also reduced the compensation of its executive employees drastically to cut costs. 

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