Bankrupt Darshan Bathija-led Vauld to hire new CEO, Board to bailout creditors

New Delhi, Aug 27 : Darshan Bathija-founded Vauld, a Singapore-based crypto exchange that has been in ongoing bankruptcy proceedings since last year, has received permission from the courts to restructure its board and appoint a new CEO.

The beleaguered crypto-lending will appoint a new CEO, a creditor representative, and a scheme manager, Bathija posted on X (formerly Twitter).

According to him, the Singaporean courts have approved Vauld’s proposed restructuring plan.

The new top management will lead the company’s bailout process.

“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,” Bathija posted.

“Customers are currently re-submitting their KYC information.

More updates to follow in short order,” he added.

In August 2022, Indian law enforcement agencies seized Vaulds bank assets worth Rs 370 crore over its "predatory lending practices”.

The ED conducted searches at various premises of Yellow Tune Technologies Pvt Ltd in Bengaluru, and froze assets belonging to Flipvolt crypto exchange which runs the Vauld in the country.

The company, like several other players offering crypto services in India, had received summons from the ED office, "seeking certain information/documents".

“We, like several other players offering crypto services in India, had received summons from the Enforcement Directorate, Hyderabad, India in the month of July 2022, seeking certain information/documents.In due compliance with the summons, we fully cooperated with the Enforcement Directorate and provided all the required information/documents,” Vauld had said in a statement.

na/prw