Vauld Creditors Alliance
The Vauld Creditors Alliance (VCA) was formed in February 2023 in response to DeFi Payments, Pte. Ltd (aka Vauld) and their advisors, Kroll's, mismanagement, misrepresentation, and censorship of the creditors of the Vauld Group of companies.
VCA's goal is to initiate and implement a Creditor-Driven Winding Up (WU) of the company opposing the proposed Company-Driven Managed Winding Down (MWD).
Both WU and MWD are forms of corporate liquidation.
LATEST UPDATE:
The recent court hearing, that took place on April 25, ruled to
1. Grant another four months of the moratorium extension to the Kroll-run Vauld , further draining creditor funds for another $1.5m to prepare for the scheme launch;
2. Make them add [irrelevant] disclosure to "highlight all available information on "Counterparty A", which they can't because they don't disclose anything in that regard;
3. Separate future scheme voters into two groups: a) Creditors of Vauld and b) Creditors with INR balances, presumably of FlipVault.
THE VCA POSITION:
We continue to strongly object the proposed scheme ot the company-managed winding down due to no creditor's oversight and exhausting cost to creditors ($10m and running). When and If it gets to the voting for the scheme (see below the 355 page document) our strong position to VOTE "NO" and terminate this scheme as disadvantageous and costly to creditors vs. court-appointed and creditor-managed Winding Up aka Liquidation.
Clarification on payouts!
Be very careful with the rhetoric of the V/K! All payments will be calculated as the % of the USD values of creditors' holdings as of July 4, 2022. E.g., if you held 1BTC (priced at $20k on July 4) and the payout is 35%, you will receive $20,000x0.35, and NOT 0.35BTC! AFTER you receive USD value, you may elect to convert that to any of the four crypto choices (BTC, ETH, XRP, or USDC). They will go to the market and buy it or you, but they present it like you will be paid "in crypto." That's not correct.
THE PETITION AGAINST THE PROPOSED "SCHEME"
a/o Monday Apr 24 has collected 242 signatures with $49.4m assets locked and was submitted to the Hon. Judge Aedit Abdullah J. Thank you all who participated and made your voice heard.
What is wrong with Vauld's "Restructuring scheme":
* Forcing predatory RDA (Reverse Dutch Auction) to creditors vs. equal distribution of available assets. RDA disadvantages those who participate and those who don’t. The "RDA" envisions that some will exit the restructuring with a fractional claim and forfeiture of any subsequent claim. In contrast, all others will stake their claim primarily against recoveries of an unknown counterparty under NDA. The scheme's verbiage also says it is at Kroll’s discretion to determine when they will return funds to the creditors. The only obligation they have is to pay out the first RDA.
* Starting a "new Vauld 2.0" without the creditor's consent, allegedly using the creditor's funds currently locked in Vauld's custody; this also includes unrealistic projections for startup and completion dates that only provide the creditors with a false sense of security and hope.
* Refusing independent audit by 3rd party of all liquid and illiquid assets BEFORE implementing the "scheme," including receivables and contractual obligations.
* Paying themselves first. $9.4m already allocated regardless of the outcome, while collecting $367k per month for fees and salaries. (source: email sent by Vauld on April 15th)
* Contains a flagrant conflict of interest with the assignment of Kroll Issuer Services, a company wholly owned by Kroll, Inc, as the tabulation and RDA agent to oversee the creditor's meetings and voting. The Kroll companies stand to profit immensely should the vote be determined in the Applicant's favor, with both companies remaining engaged in the scheme through to completion.
* Blatant misinformation on a record re: Creditor Representative. Page 193 of the !st affidavit from April 12th. COI (Committee of Creditors) is always formed to work with LIP (Liquidation Insolvency Practitioner) to oversee the liquidation process. Unlike in Winding Down, in a Winding Up, a LIP only gets paid on its invoice if the COI and the court approve its billings. ...and more
Download the scheme proposal from Vauld/Kroll from April 12, 2023
The VCA's mission is to research, report, and act on matters pertaining to the restructuring of Vauld and its legal entity Defi Payments Ltd. The VCA aims to ensure Vauld creditors at large, and VCA members in particular, receive accurate information, swift action, and fair treatment resulting in the maximum return of creditor funds at the lowest cost. Visit the about page for more info on the VCA. Creditors can join the VCA here.
IMPORTANT – March 27th, 2023 Court hearing update is posted here
IMPORTANT – Review Vauld/Kroll's track record of handling Vauld restructuring. Let us know if you disagree with our assessment.
IMPORTANT – Go here to watch the recording of the recent court hearing from March 27, 2023.
Watch the video on YouTube of the VCA AMA #3 – This Live AMA provides updates on what the VCA has been working on, discusses the upcoming court hearing, and answers questions posed by attendees.
Watch the video on YouTube of the VCA AMA #2 – This live AMA introduces the KordaMentha proposal for winding up Defi Payments.
Watch the video on YouTube of the VCA AMA #1 – This live AMA introduces the VCA, shows the VCA Plan, introduces VCA Managers, introduces Korda Mentha restructuring/liquidation firm, and answers live questions from attendees.
See the VCA Vauld Financial Irregularities Report
See the results of Vauld's recent poll here.
IMPORTANT – February 14, 2023
- Read the report on how Vauld has censored the VCA.
- Read the report on how Vauld, Kroll, and select CoC members have misrepresented the Winding Up liquidation option.
- Read the open letter in response to Rose Kehoe of Kroll requesting "questions from VCA."
- See the key differences between Managed Wind Down vs Winding Up
- See the key benefits of Liquidating Defi Payments via Winding Up
Key Info
Please contribute to the VCA Fund. Help us to help you!
See the VCA Plan.
Read the report entitled Clearing Up Misconceptions on Liquidating Defi Payments.
The first report published on this site is Report on Vauld and Kroll's Improper Handling of the Vauld Restructure released on January 11, 2023.
The second report released January 16, 2023 provides details on issues with Vauld's proposed Fund Manager option.
Be sure to visit the stories page for stories from Vauld creditors.
Supporters are encouraged to spread the word on social media via Talking Points.
See the VCA Plan.
Read the report entitled Clearing Up Misconceptions on Liquidating Defi Payments.
The first report published on this site is Report on Vauld and Kroll's Improper Handling of the Vauld Restructure released on January 11, 2023.
The second report released January 16, 2023 provides details on issues with Vauld's proposed Fund Manager option.
Be sure to visit the stories page for stories from Vauld creditors.
Supporters are encouraged to spread the word on social media via Talking Points.
Recent News
February 13, 2023 – Doerrfeld open letter response to Rose Kehoe
February 6, 2023 – See the VCA launch announcement.
February 4, 2023 – Progress Update From VauldCreditors.net
February 2, 2023 – See the Winding Up report.
Browse Around
Browse the menu options above for various resources and information. If you have information that would be appropriate for publicaion on this site, kindly submit it to info@vauldcreditors.net. We only accept well-written, well-documented information of benefit to Vauld creditors.
Join VCA and Sign Up for Email Updates
Join VCA and Sign Up for Email Updates