Just-In: Crypto Lender Vauld Has $10 Million Stuck On FTX
As per the latest report, Vauld, Asia’s prominent crypto lender, has its funds stuck in the now-bankrupt crypto exchange FTX. The exposure is expected to be worth around $10 million and due to the ongoing FTX crisis, officials at Vauld are left stranded with almost zero liquidity.
Trading Crypto On FTX Turned Costly For Vauld
Among other crypto exchanges, Vauld used aggressively used FTX to execute trades for its customers as it did not have its own order book. Vauld has close to a million active users who are predominantly from the Asian markets.
In August of 2022, India’s Enforcement Directorate (ED) found a Vauld client to be involved in a high-level money laundering case and therefore froze assets worth $46 million.
Vauld was given another credit protection extension last week and now has until January 20 to resolve its financial problems. However, the business is free to request another extension if required.
Vauld To Ink Deal With Rival
Vauld has been in conversation with rival Nexo about a potential deal since July as one of its restructuring solutions. At the time, Nexo and Vauld agreed to an exclusive due diligence term of 60 days, although the due diligence period has since been extended twice.
On November 19, Vauld will convene a gathering with Nexo, its creditor committee, and financial advisor Kroll. The meeting’s intention is to provide an update to the creditor committee on Vauld’s restructuring efforts, as well as a discussion on the Nexo terms.
Vauld’s Possible Next Steps
It will be interesting to see if Nexo still remains confident about the acquisition deal after knowing the FTX exposure. However, as per Vauld, if the deal is unable to go through, they will be looking into other possibilities like issuing a token and raising additional capital.
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