Investors in the collapsed Altura stablecoin vault have alleged that approximately $32 million remains unaccounted for four months after the protocol began winding down, with a UK legal dispute raising new questions about the location of customer funds.
Summary
- Altura investors allege approximately $32 million remains unaccounted for four months after the stablecoin vault shutdown.
- An investor source claims Altura circulated misleading Allica Bank screenshots showing approximately £16.4 million in funds.
- The source cites UK case BL-2026-001127 and alleges freezing and disclosure proceedings against Altura and Arora.
- Investors claim funds passed through multiple UK banks, although transaction records have not been independently verified.
In correspondence sent directly to crypto.news on October 28, a person identifying himself as Leo said affected investors had pursued court proceedings and financial tracing after promised withdrawals failed to materialize. He cited UK case reference BL-2026-001127 and alleged that records obtained during the investigation contradicted explanations previously given by Altura founder Ranveer Arora.
Consequently, the allegations concerning missing funds, potentially misleading bank documents and asset transfers remain unproven.Â
Altura investors challenge explanation for frozen bank funds
Altura began unwinding its stablecoin vault in June after processing more than 8.5 million USDT in instant redemptions within 24 hours. Arora attributed the decision to sustained withdrawal demand and said some investments would require ordinary settlement periods before users could receive their money.
As previously reported by crypto.news, the vault had previously held approximately $39 million at its peak. Altura said it had no direct exposure to Main Street’s troubled msUSD stablecoin, whose loss of its dollar peg had contributed to anxiety across yield-bearing products.
By late July, the explanation for delayed repayments had changed. Altura said approximately £16.4 million intended for redemptions was held in a bank account undergoing an internal restriction, delaying a planned conversion into USDT.
The October source disputes that account. He alleges that screenshots shared around July 28, purportedly showing funds at Allica Bank, were fabricated and that investigators found no account matching Altura’s description.
Neither the original bank-verification evidence nor a statement from Allica Bank was available to independently substantiate the accusation. The authenticity of the screenshots remains unresolved.
UK legal proceedings become focus of recovery dispute
The investor’s email identifies proceedings under reference BL-2026-001127 and claims that affected depositors obtained freezing and disclosure measures against Altura and Arora in September.
Separate reporting published in October described a September 25 hearing and an interim worldwide freezing order connected to the dispute. However, that account relied on information provided by parties involved in the case, and the original order was not available for examination.
According to the source, the proceedings failed to identify recoverable funds in accounts investigators examined. He said a default judgment was expected within days but did not provide a hearing notice, judgment application or confirmed date.
A default judgment would require a court decision before it could be described as granted. Similarly, an interim freezing order would preserve assets subject to its terms; it would not, by itself, establish criminal wrongdoing.
Public UK company records identify Arora as the person controlling at least 75% of Altura DeFi Ltd’s shares and voting rights. They do not establish the location of investor funds.
Investor source alleges transfers through UK banking system
The source further claims that a financial investigation traced investor money through several UK banking accounts associated with Altura, followed by transfers to an unidentified service with alleged links to China.
He characterized the transactions as possible laundering activity. No bank statements, transaction identifiers, recipient details or forensic tracing report were provided to substantiate that characterization, and the institutions allegedly involved were not named.
The email separately raises questions about Arora’s identity, alleging that investigators encountered documents or online accounts bearing different names. Those assertions could not be authenticated, and no conclusion can be drawn about identity fraud from the correspondence.
The source said investors had filed criminal complaints in several countries, including the UK and Germany. Complaint reference numbers, acknowledgments from police and confirmation of active investigations were not supplied.
Withdrawal questions persist four months after shutdown
In July, Altura told users that its remaining real-world asset investments had returned and that an over-the-counter conversion would precede final repayments. Its July explanations referred to banking restrictions after the company had previously described delays related to investment settlement.
The source now says investors have not received substantial recoveries and do not know where the remaining money is held. That account has not been reconciled with individual wallet records, verified redemption totals or an independently established balance of outstanding claims.
Altura and Arora have not provided a response to the allegations in the material available for this report. The October 28 correspondence does not establish that either party received the new accusations and an opportunity to comment.
The source said he could provide further supporting documents, including an identification report, but those materials were not available for review. He supplied the case reference while declining to connect the newsroom with a spokesperson or provide court documents.
