According to the latest report, Vauld is Asia’s most prominent crypto lender. It has its funds in the now-bankrupt crypto trading platform FTX. Vauld officials are left with virtually no liquidity due to the ongoing FTX crises. The exposure is estimated to be around $10 million. Vauld’s Crypto Trading on FTX Has Been a Painful Experience
CoinGape’s Just-In: Crypto Lender Vauld Stuck on FTX – The post appeared first on CoinGape

  

According to the latest report, Vauld is Asia’s most prominent crypto lender. It has its funds in the now-bankrupt crypto trading platform FTX. Vauld officials are left with virtually no liquidity due to the ongoing FTX crises.
Vauld: Trading Crypto on FTX is expensive
Vauld, among other crypto exchanges used FTX aggressively to execute trades on behalf of its customers because it didn’t have an order book. Vauld boasts close to a million users, most of whom are from Asia.
Read More: BlockFi Preps For Potential Bankruptcy After FTX Collapse
India’s Enforcement Directorate, (ED) discovered that a Vauld client was involved in a high level money laundering case. They therefore frozen assets worth $46 millions.
Vauld received a credit protection extension last Wednesday and has until January 20th to resolve its financial issues. The business can request an additional extension if necessary.
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Vauld To Ink a Deal with Rival
Since July, Vauld has been in contact with Nexo to discuss a possible deal as one of its restructuring options. Nexo and Vauld had agreed to a 60-day exclusive due diligence period. However, the due diligence period was extended twice since then.
Read more: This Hedge Fund loses a majority of funds due to FTX Bankruptcy
On November 19, Vauld will host a meeting with Nexo, its creditors committee, and Kroll, the financial advisor. The meeting will provide an update to Nexo’s creditor committee on Vauld’s restructuring efforts as well as a discussion about the Nexo terms.
Vauld’s Next Steps
It will be interesting for Nexo to see if they still believe in the acquisition deal despite the FTX exposure. Vauld said that if the deal fails, Nexo will explore other options, such as issuing tokens and raising additional capital.

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