Vauld Started Ambitious
Vauld launched in 2018 in Bengaluru as a full-service crypto suite with lending, borrowing, and trading. At its peak, it supported 275+ assets, fiat rails, APIs, and high-yield accounts, attracting millions in funding and rapid user growth.
The Crisis That Halted It
In July 2022, Vauld suspended all trading, deposits, and withdrawals. The platform faced a liquidity crunch after massive withdrawals, TerraUSD collapse, borrower defaults, and asset devaluation. Liabilities reached ~$400M while assets stood near ~$330M.
Restructuring in Court
- Entered restructuring under Singapore court moratorium
- Board reshuffled with new CEO, creditor representative, and scheme manager
- Acquisition attempts collapsed
- Platform remains stuck in legal limbo
Where Creditors Stand
- Owes ~$363M to retail investors (out of ~$402M liabilities)
- Recovery relies on asset sales and claims against counterparties
- First stablecoin distributions may begin in 2025
- Withdrawals expected but slow and partial
Platform Features That Disappeared
- Fiat-to-crypto trading
- Lending with double-digit interest
- Borrowing and margin trading
- Spot markets across BTC, ETH, USDT, and more
Today none of these features are operational – the platform is frozen.
Trust Issues and Risks
- User funds were pooled and lent out via centralized custody
- Since suspension, transparency has been minimal
- Repayment fully depends on administrators and court process
- High risk remains for all creditors
User Experience Is Frozen
- Website may load, but trading and withdrawals disabled
- No liquidity or active markets
- Communication rare and vague
- Users report lack of updates and unclear timelines
Who It Might Serve Now?
Only creditors, legal teams, and analysts tracking recovery. For traders or new users, the platform offers nothing. It is a case study in restructuring, not a functioning exchange.
Pros and Cons
| Pros | Cons |
|---|---|
| Comprehensive suite at launch (lending, trading, fiat rails) | Suspended in 2022, frozen operations |
| Raised significant funding and gained traction | ~$400M liabilities, creditors await repayment |
| Legal restructuring offers partial recovery potential | No active exchange features or roadmap |
| Case study in crypto risk management | Trust severely damaged, uncertain future |
Final Thoughts
Vauld rose quickly, offering yields and easy crypto access. But poor risk management and market shocks led to collapse. Today, it is not an exchange but a restructuring case. Creditors may receive partial recovery, but full repayment is unlikely. Vauld stands as a cautionary tale of how fast lending-driven platforms can fail when markets turn and trust disappears.