Several creditors of troubled Asian crypto lender Vauld have commenced originating claims and issued demand letters to the firm.
Vauld had abruptly halted client withdrawals earlier this month.
Vauld owes a total of $402 million to its creditors. Of that sum, $363 million — or 90% — comes from individual retail investors’ deposits.
Originating a claim means a party (the claimant) has started a civil claim against another party (the defendant).
Vauld has received two originating claims and two demand letters from the four creditors, per the new affidavit.
Vauld had received several, separate letters of claims at the time from select creditors, claiming a total of more than $2 million.
Vauld halted client withdrawals on July 4 after facing financial difficulties caused by TerraUSD’s (UST’s) implosion and the broader crypto market downturn.
Vauld is seeking a moratorium extension for six months. A hearing in that regard is scheduled for August 1 in which the court will decide whether to grant Vauld the extension or not.
Creditor support is one factor that would determine the court’s decision and Vauld seems to have received that support, according to a new affidavit.
The firm requested creditor support via a Google form and the deadline to submit the form was today, 6 pm Singapore time.