Embattled crypto lender Vauld has a major update for its creditors. In a Telegram message dated 20 June, the firm apprised its users of a vote that took place from May 31 to June 8, 2023, giving creditors the chance to choose whether or not to support the proposed scheme of funds payout [the “Scheme”].
The poll also had the option of their preferred choice of Creditor Representative should the Scheme be passed and made effective.
According to the results, a total of 6,721 legitimate votes—representing USD253,139,730.25 in approved claims—have been cast. Mr. Luke Furler, the court-appointed Independent Assessor from Quantuma [Singapore] Pte Limited, has confirmed the vote’s outcomes.
Out of the valid votes received from creditors, 91.85% by count and 90.23% by value voted in favor of the scheme. As a result, Vauld informed that it will move forward with an application to the Singapore Court to sanction the scheme due to meeting the necessary threshold of 75%.
Based on the results that have been verified above by the Independent Assessor, we have been advised by our solicitors that the statutory threshold of a majority in number and 75% in value of the creditors for each class of creditors and across the board have been met. As such, we are pleased to announce that we will be proceeding with an application to the Singapore Court to sanction the Scheme
When a user asked when INR holders would receive their money back, Vauld replied that INR would be refunded in the next 4-6 weeks from the moment the scheme was put into place.
Members also enquired about the timeframe of the preferred payout option which the platform stated, “You will be able to opt-in for your favorite track during the second or third week of July.”
Last July, the beleaguered firm filed for creditor protection in Singapore after it suspended withdrawals, trading, and deposits on its platform.
Vauld’s Assets Froze By India’s ED
It received a second court extension to present its restructuring plan, giving it protection from its creditors until March 24.
Authorities in India froze the platform’s assets worth Rs 370 crore [$46 million] last August.
The crackdown was part of a nationwide investigation by the top enforcement agency on a number of homegrown crypto firms for potential “predatory lending practices” in violation of the RBI [India’s central bank] guidelines.