Troubled crypto firm Vauld has an asset liability mismatch at the group level, said the company’s CEO and co-founder Darshina Bhatija, adding that its parent Defi Payments has filed for a six-month moratorium period.

“On a group level, Vauld has assets worth about $330 million and liabilities worth about $400 million at this time,” Bhatija said in an email to investors.

It also has a mismatch of tenure where it has committed a significant proportion of its assets under management (AUM) towards loans with a tenure of another three to 11 months that can’t be recalled early, he further said.

“We have a mismatch of assets and liabilities of Defi Payments Pte Ltd where the main contributing factors to the gap have been mark to market losses on BTC, ETH, and MATIC trades and exposure to UST,” Bhatija explained.

He also announced that on July 8, Defi Payments has filed for a moratorium in the Singapore Courts according to section 64 of the Insolvency, Restructuring and Dissolution Act, 2018.

“I want to clearly state that this filing does not mean that we are winding up or shutting down the company,” he stressed, adding that the company is asking for time to formalise its restructuring strategy so that it can resume operations.

The top priority is to complete the due diligence process with Nexo and the company is hopeful of “joining forces” with it.

Bhatija also highlighted that the highest priority is to develop a solid repayment plan to Vauld creditors.

If the deal with Nexo does not go through, Vauld would consider proposals such as raising more venture capital, exploring alternatives to a complete acquisition, wait for some of its deployed capital to be returned, converting debt to equity, issuing its own token or consider developing a payment plan tied to future revenue.

Vauld had on July 4 suspended all withdrawals, trading and deposits on its platform with immediate effect, citing financial challenges.

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