Vauld (Defi Payments) collapse — what creditors were owed and recovered (2022)

Vauld, operated by Singapore-incorporated Defi Payments Pte Ltd, suspended withdrawals, trading and deposits on 4 July 2022 after roughly US$198 million was withdrawn in three weeks in the wake of the Terra and Three Arrows Capital failures. On 8 July 2022 its counsel filed for a moratorium under section 64 of Singapore's Insolvency, Restructuring and Dissolution Act. The High Court granted three months rather than the six sought, running to 7 November 2022, and the protection was extended repeatedly over objections from creditors.

An affidavit by co-founder and chief executive Darshan Bathija, filed on 8 July 2022, put total liabilities at US$402 million, of which US$363 million was retail deposits, across about 147,000 creditors. Twenty large unsecured creditors accounted for US$125 million. A proposed acquisition by Nexo lapsed.

Creditors approved a scheme of arrangement dated 27 May 2023 with about 91.85% support. The High Court sanctioned it and the scheme took effect on 16 August 2023. Kroll, which ran the process, described unsecured claims of US$325 million held by about 150,000 retail creditors and forecast recoveries of up to 93%, with a first distribution of 36% due by October 2023. Creditors chose between a Pro-Rated Track and a Variable Recoveries Track.

The first distribution began in the fourth quarter of 2023. A second distribution announced on 29 January 2026 released US$82.3 million of tokens. Token withdrawals were suspended from 30 June 2025 while the scheme manager worked through Singapore's new digital token service provider regime.