Vauld

The platform functioned as a crypto lending and exchange service, allowing users to buy, sell, and trade a wide array of cryptocurrencies. Its business model centered on generating revenue from transaction fees and the interest rate spread between lending and borrowing activities. Vauld enabled users to deposit funds into a centralized pool, which were then lent out to borrowers at a specified interest rate, with loans being over-collateralized up to 150%. The platform offered interest-earning accounts on various digital assets, asset-backed lending, and automatic investment plans. A significant milestone was the July 2021 Series A funding round of $25 million, led by Valar Ventures, with participation from Coinbase Ventures and Pantera Capital, which was intended to fuel expansion.

However, in July 2022, Vauld suspended all withdrawals, trading, and deposits, citing severe financial difficulties. These challenges were attributed to volatile market conditions, the financial troubles of key business partners, and a significant volume of customer withdrawals amounting to nearly $198 million following the collapse of TerraUSD. This led the company to seek a moratorium in a Singapore court to prevent legal action from creditors and explore restructuring options. The company engaged Kroll as its financial advisor and legal counsel in both India and Singapore to navigate the situation. After a period of uncertainty and creditor protection extensions, a restructuring plan was approved by the Singapore High Court in September 2023. This plan, one of the first successful schemes for a crypto business in Singapore, involved a managed wind-down of operations and a board overhaul, with the founders stepping down from their management positions. The restructuring aims to provide recoveries to its approximately 150,000 global creditors, with repayments made in cryptocurrency.