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Vauld User Deposits Could Face Reductions If Returned? Here’s Why

Vauld could proceed to return money if Nexo deal goes through Saleem Lala, a crypto trader, said users would take a haircut on their deposits
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Vauld User Deposits Could Face Reductions If Returned? Here’s Why

After abruptly suspending withdrawals, trading and deposits on its platform, Vauld depositors are eagerly waiting for an update on funds. On Monday, the exchange said it was exploring restructuring options with its financial and legal advisors. But going by the events that led to the collapse of credit ecosystem in crypto space, it looks like customers would not get all their funds back.

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Vauld Co-Founder Comments On Indirect Exposure

Vauld Co-founder Darshan Bhatija had in a Telegram chat stated that contagion effects of the market sentiment have impacted his company’s prospects. He said there was no clarity as to who had indirect exposure to companies like Celsius, Babel, Voyager and 3AC. Bhatija added that the contagion effects of the market had impacted Vauld as several counterparties began to default.

“Contagion effects of the market when multiple counterparties started defaulting. The market is yet to see through who has indirect exposure.”

Meanwhile, Vauld depositors are seeking immediate action towards returning depositor money. If the Vauld management returns customer money, it could pave way for gaining public trust. Returning depositor money could be an incredible achievement, said Unleash Instinct, a crypto enthusiast on Twitter.

“Hoping that Darshan Bathija and Vauld are able to return depositor money. Can be an incredible achievement if they do. They will definitely earn the respect of their customers who might continue to use Vauld or any future venture they embark on. But reputation is everything.”

In a latest, Bhatija said his company gives importance to customers over founders and venture capitalists. “We are not prioritizing our founders and VC investors.” He said Vauld customers are top most priority and that all actions  will lead to maximize customer value.

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Vauld Customers To Lose Some Part Of Deposits?

Meanwhile, the talk is on around how Vauld could proceed to return money if Nexo deal goes through. Saleem Lala, a crypto trader, said users would take a haircut on their deposits. “As an alternative, returns could be made through other means like tokens or equity swap, similar to what Voyager is planning.”

Talks with Nexo are on, but I don’t think they will finance the shortfall directly, he added.

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Anvesh Reddy

Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at anvesh@coingape.com or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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