Vauld Has Disclosed a Shortfall of $70 Million in a Letter to Creditors

Vauld has disclosed a shortfall of $70 million in a letter to creditors. Vauld said it has assets worth around $330 million and liabilities worth about $400 million. But these figures might not be final because Vauld said it is currently undergoing forensic and financial audits and the disclosed numbers are to the best of its knowledge. As for how Vauld landed up in this situation, the firm said the main contributing factors for the shortfall are mark-to-market losses on $BTC, $ETH and $MATIC trades as well as exposure to the collapsed $UST. Mark-to-market losses are losses generated through an accounting entry rather than the actual sale of a security. "We also have a mismatch of tenure where we have committed a significant proportion of our AUM towards loans with a tenure of another 3-11 months that can't be recalled early."