Okto Crypto Wallet Launches $5 Mn Fund To Aid Vauld Users

CoinDCX's crypto wallet, Okto, has pledged a USD 5 million treasury fund to assist troubled crypto lending platform Vauld's users. Additionally, they are offering a 2 per cent bonus to encourage users to transfer their funds to Okto.

Following Vauld's bankruptcy and the cessation of its operations last year, a new board was appointed, with former directors Darshan Bathija and Sanju Sony Kurian stepping down. Indian creditors who had funds locked up had until 16 October to withdraw their assets.

With this fund and additional support, Okto aims to provide Self-Custody Assurance to Vauld's users, emphasising their control over their assets. This approach ensures that users have complete ownership of their private keys and consequently, their funds.

Neeraj Khandelwal, the founder of Okto, expressed the company's vision of supporting the crypto ecosystem and empowering the Web3 community through advanced technology-backed platforms and applications designed to address broader challenges within the ecosystem. The concept of self-custody is revolutionary, granting users complete ownership of their assets.

He emphasised Okto's mission to balance security, convenience and custody while addressing the crypto wallet trilemma. Okto, launched last year, is a keyless, self-custody Web3 wallet that provides secure access to DeFi services, ensuring the safety of users' funds. The platform is backed by prominent investors, including Steadview, BCap, Coinbase Ventures, Pantera, Bain Capital Ventures, among others.

Vauld, which has around USD 330 million in assets and USD 400 million in liabilities, faced legal issues in the past. The Enforcement Directorate had frozen the startup's bank balances, payment gateway balances and crypto balances worth Rs 370 crore in August 2022, citing allegations of assisting predatory lending apps. Okto's support for Vauld's users aims to provide a secure and user-friendly environment, reinforcing the importance of self-custody and ownership within the crypto ecosystem.