Vauld published a letter to its creditors last week after it stopped customer withdrawals, announcing a total deficit of approximately $70 million.
Vauld Announces He Has $330M In Assets And Has $400M In Debt
Sharing the letter with news platform The Block on Monday, the company said it has about $330 million in assets and nearly $400 million in debt.
However, these figures may not be final because the company has stated that it is currently undergoing judicial and financial audits and that the figures announced are the most accurate figures they know.
As for how Vauld ended up in this situation, the firm said the main factors contributing to the shortfall were market losses in Bitcoin (BTC), Ethereum (ETH) and Polygon (MATIC) trading, as well as exposure to the crashed algorithmic stablecoin terraUSD (UST).
Market losses are losses incurred through an accounting entry rather than the actual sale of a security.
The company added the following in its statement:
“We also have a maturity mismatch where we commit a significant portion of our assets under management for 3-11 month loans that cannot be collected early.”
Based in Singapore with the majority of its team based in India cryptocurrency The company suspended customer withdrawals on July 4.
The next day, London-based rival Nexo signed a contract with the firm for a potential acquisition. Nexo is currently undergoing a due diligence process and Vauld clients’ funds are still blocked.
Some Vauld customers continue to be skeptical of the Nexo deal. In the letter he sent to creditors, Vauld stated that he had other plans in order not to make his customers suffer if the deal did not happen.
*Not investment advice.