It was in 2018 when Darshan Bathija, an Indian, founded a “blockchain-based finance enterprise” called Bank of Hodlers.
Bank of Hodlers was exposed as a simple crap token exit-scam MLM crypto Ponzi by BehindMLM in their June 2019 review.
Following the failure of the Bank of Hodlers in 2021, Bathija abandoned MLM in favor of rebranding as Vault.
Vauld enticed investors, particularly in India, with yearly returns of 40% on many different cryptocurrencies.
If everything came crashing down on July 4, 2022, when Bathija stopped allowing people to withdraw Vauld, essentially ending the Ponzi scam (again).
Bathija blamed “volatile market circumstances” and “financial issues” to avoid acknowledging Vauld had run out of invested cash to pay withdrawals.
According to Bathija, $197.7 million was withdrawn from Vauld by investors in June 2022. This seems very much like the classic Ponzi scheme collapse scenario, when withdrawals surpass new investments.
Vault, like Bank of Hodlers, is a Singapore-based “shell business,” although Bathija is located in India. When it comes to policing offshore securities fraud, Singapore has a checkered past.
Sadly, Bathija (right) is acting as if Vauld is a viable corporation with choices rather than admitting his relaunched Ponzi scheme failed again.
(Vauld) has hired Cyril Amarchand Mangaldas LLP of India and Rajah & Tann Singapore LLP of Singapore to handle legal matters.
We expect this will pave the way for us and our financial and legal experts to investigate viable alternatives to the current structure of our company.
Vauld platform users, please be aware that we are currently unable to respond to any more inquiries or instructions in this area.
Bathija noted that special plans were being prepared for consumers who needed additional deposits to cover margin calls related to collateralized loans.
55% of Vault’s website traffic comes from India, according to Similarweb. When it comes to visitor numbers, the United States ranks second, with 14%.
Based on Singaporean court filings (where Vauld has sought protection from its investors), Decrypt estimates that Vauld has “approximately $330 million” in assets.
The issue is that this sum is only supported by $287.7 million in total assets. As the Ponzi scam continues, the gap widens.
While the Singaporean government is unlikely to take action, the Indian government has frozen Rs. 370 crores of Vault’s assets (about $46.4 million).
Vauld stated that the freeze was regrettable in a press release issued in reaction to the enforcement action.
In India, like in every other nation, we adhere to stringent Know Your Customer regulations. To safeguard the company, its clients, and other interested parties, we have decided to consult with legal counsel to determine the appropriate next steps.
There is still a need to register with financial regulators and submit an audited financial report in addition to doing KYC. In June of this year, I brought this to Bathija’s attention.
It all started when Bathija dismissed BehindMLM’s analysis of Bank of Hodlers as a Ponzi scam as “worthless clickbait that’s not studied well at all,” leading to the heated argument.
Bathija has disabled all of his social media accounts except Twitter, which he seldom checks. It is unknown if he has escaped or is still in India.