Major Changes at Defi Payments | Damir Butmir Removed Amid Controversy
Edited By
Dmitry Ivanov
Defi Payments Pte. Ltd. has made headlines with the abrupt removal of Mr. Damir Butmir as both a director and Creditors’ Representative (CR) due to allegations of gross negligence and fraud. This decision came on December 31, 2025, following a board meeting where significant concerns about Butmir's actions were discussed.
What Led to the Removal?
The board of directors, after notifying Butmir of the meeting via email, took decisive action against him for multiple reasons:
Misuse of Company Funds: Butmir reportedly instructed the Vauld Platform to disburse assets while knowing the associated risks, leading to potential loss and liability for the company.
False Representation: He allegedly misrepresented his authority to access $10,000 of company funds without the required joint approval.
Refusal to Return Funds: Butmir also faced criticism for not returning funds received on two occasions in November and December 2025.
Deceptive Statements: Comments made to scheme creditors about leadership changes in the company were found to be false, raising red flags with the board.
The Reaction from People
In the wake of the announcements, reactions on forums reflect a mix of frustration and cautious hope. Many express skepticism about recovering lost funds. One comment read, "We are never getting our money back, are we?" Another user lamented the situation, stating, "This is like 3rd grade where they all tell on each other."
However, not all sentiment is negative. Some view this change as a step forward. "It’s a good step in the right direction. Now Kroll needs to file charges," said another respondent, underscoring a desire for accountability.
Implications for the Company
With Butmir gone, the board is looking to stabilize operations and regain trust. Key priorities will include:
Naming a New CEO: Luke Anthony Furler is being considered for the position.
Moving Forward with Distributions: Plans for the Second Distribution and the resumption of the First Distribution are underway, aiming to restore confidence among creditors.
"To improve adherence to the Scheme and expedite distributions in a secure manner," Jason Aleksander Kardachi, Scheme Manager, stated in a recent communication.
Key Points of Interest
🔑 Overwhelming skepticism from people about fund recovery.
📈 The board's decision came after acknowledging severe mismanagement.
🎯 New leadership and distribution plans on the horizon.
The situation remains dynamic, and updates will be vital as the company seeks to rectify its course amidst rising concerns among creditors.
Future Developments on the Horizon
There’s a strong chance that Defi Payments will appoint a new CEO within the coming weeks, with Luke Anthony Furler as a front-runner. This leadership shift is essential for rebuilding credibility, and experts estimate around a 70% probability that distributions will resume by mid-2026 as efforts to regain trust intensify. As the board navigates these turbulent waters, the focus will likely shift toward transparent communication with creditors to mitigate skepticism while addressing the ongoing allegations against Butmir. If the company can stabilize operations and follow through with its distribution plans, it could open the door for recovery efforts, potentially reviving confidence in the crypto sector as a whole.
Historical Echoes in Crisis Management
This situation parallels the fall of the Enron Corporation in the early 2000s, where internal mismanagement and unethical practices led to a collapse that shocked many. Public trust was shattered, yet the aftermath saw regulatory reforms that reshaped corporate governance. Just as Enron's fallout incentivized stricter regulations, the turmoil at Defi Payments may prompt the crypto industry to scrutinize governance more closely, perhaps pushing for stronger oversight and ethical standards in financial technology sectors. This suggests a potential silver lining amidst the chaos, offering hope for a more accountable future in the evolving market.