Amber Group, a downtrodden crypto trading company, owes approximately $130 million to Vauld’s CEO Darshan Bathija.
Vauld’s statement from July says it has a $130 million net loan receivable from “Counterparty 1,” which is Amber, a source informed The Block.
According to an affidavit obtained by The Block at the time: “Defi Payments has a loan receivable in the amount of ~US$165,557,929 (the ‘Counterparty 1 Loan Receivable’) from Counterparty 1 against which Defi Payments has taken a loan of ~US$35,000,000 (the ‘Counterparty 1 Loan Payable’) from Counterparty 1, where the Counterparty 1 Loan Receivable has been pledged as security against the Counterparty 1 Loan Payable,”
According to a Nov. 25 Vauld affidavit, Amber must repay Bathija by June 2023. The affidavit states that Vauld has not revealed that Counterparty 1 is Amber to its creditors or creditors’ committee because of a non-disclosure agreement.
Contrary to what it is in affidavits, Vauld claims that Counterparty 1, also known as Counterparty A, “is sizeable and well recognised.”
Amber Group and Vauld Struggling to Maintain Composure
Amber’s debt to Bathija is Vauld’s latest setback as Amber Also seems to be having trouble recently. The group has recently been questioned about its insolvency, according to Lookonchain.
The company reportedly laid off workers, halted expansion, and canceled a $25 million sponsorship arrangement with Chelsea FC. Amber reduced employees to 400 from 700.
Vauld could struggle if Amber doesn’t repay Bathija. The Block alleged that Vauld had $10 million stranded on FTX which the affidavit puts the sum as $6 million.
Notably, Vauld ceased payments in July. Since then, Vauld has been negotiating with Nexo. Given its rising problems, it’s unclear whether Nexo will try to negotiate a settlement with Vauld.
Moreover, the Singapore-based crypto lender submitted an affidavit in July listing its creditors and responsibility which shows that Vauld owes retail investors $363 million.
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