<p>Failed Singaporean cryptocurrency lender Vauld has unveiled a comprehensive overhaul of its board structure.</p><h2 id="header-0">Ongoing restructuring</h2><p>The platform, which faced financial turmoil leading to its declaration of bankruptcy last year, is introducing fresh leadership to spearhead its restructuring efforts. The move involves the appointment of a new CEO, a creditor representative, and a scheme manager.</p><p>The current CEO and Co-Founder of Vauld, Darshan Bathija,<a href="https://twitter.com/darshanbathija/status/1694810207233380483" rel="noopener noreferrer nofollow"> announced</a> the proposed changes via a post on X (formerly Twitter) on Thursday. He emphasized that the new appointees would take charge of orchestrating a much-needed bailout.</p><p>The challenges faced by the company through its ongoing bankruptcy proceedings have prompted Vauld to secure court approval for this new organizational scheme. In his social media post, Bathija stated:</p><p>“Vauld (Defi Payments Pte Ltd) got its scheme of arrangement passed in Singapore courts. As part of the scheme, the current board will be replaced with a new CEO, a creditor representative, and a scheme manager.” Additionally, Bathija noted that the exchange’s customers are actively updating their Know Your Customer (KYC) details.</p><p>This announcement comes almost a year after Vauld came under scrutiny due to a money laundering investigation. The cloud of suspicion surrounding the firm at the time led to the freezing of assets worth $46.4 million from its domestic operations by Indian authorities.</p><h2 id="header-1">Nexo acquisition failure</h2><p>In February of this year, the Singapore High Court granted Vauld an extension until March 24 to formulate a comprehensive strategy for repaying its creditors. The extension became crucial after a<a href="https://support.vauld.com/en/articles/6538422-updates-on-nexo-acquisition-as-of-6-sep-22" rel="noopener noreferrer nofollow"> potential acquisition</a> deal with Nexo fell through. However, despite this reprieve, the exchange was unable to secure a further extension, fueling discussions within the community about the challenge of meeting creditor obligations within a relatively short time frame.</p><p>In a step to facilitate the resolution of outstanding amounts, the court established a committee of creditors (CoC). This move was prompted by allegations from a faction of creditors that Vauld was impeding communication and implementing unwarranted corrective measures. Notably, the exchange owes more than $2.2 million to these creditors.</p><p>Vauld has contracted the services of risk and financial advisory firm Kroll as part of the restructuring efforts. In an isolated instance of good fortune, it appears that Vauld creditors are unaffected by a<a href="https://twitter.com/Dhruvforreal/status/1695076861204979829?s&#61;20" rel="noopener noreferrer nofollow"> data breach</a> which occurred recently at Kroll, while creditors of the Genesis, FTX, and BlockFi crypto bankruptcy processes have had their data compromised.</p><h2 id="header-2">Charting a path forward</h2><p>Bathija conveyed that more updates regarding the platform’s path forward would follow soon. Vauld’s financial instability can be attributed to several factors, chief among them being the ripple effect of Terra’s downfall. Further complications arose due to economic issues tied to the Celsius Network and Three Arrows Capital (3AC) defaulting on their loans. These cumulative challenges led to Vauld’s operational suspension.</p><p>Despite this failure and similar issues relative to crypto lender Hodlnaut and 3AC, which were also based in the city state, Singapore continues as a jurisdiction that effectively balances regulatory control with the drive to foster innovation. Its central bank and financial regulator, the Monetary Authority of Singapore (MAS), recently<a href="https://medium.com/&#64;coinness.gl/singapore-takes-lead-in-regulating-stablecoins-4689188aa391" rel="noopener noreferrer nofollow"> unveiled</a> a comprehensive framework for stablecoins.</p>

Vauld Implements Key Leadership Changes Amid Bankruptcy Proceedings

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