Singaporean crypto trading and lending platform Vauld has recently announced that it is restricting withdrawals for users during adverse market conditions. As per a recent announcement by the company, it has “made the difficult decision to suspend all withdrawals, trading, and deposits on the Vauld platform with immediate effect.”
Volatility affected Vauld
The ongoing situation in the crypto market has affected many companies, and Vauld is the latest on the list. Apart from market volatility, the company is facing serious financial stresses due to several other factors like the financial difficulties of its business partners.
In the meantime, we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect.
— Vauld (@VauldOfficial) July 4, 2022
Notably, since June 12, Vauld has seen user withdrawals of around $198 million, mostly due to TerraUSD collapse and Celsius’s announcement to cease withdrawals in which Three Arrow Capital’s woes acted like a catalyst. The CEO of the company, Darshan Bathija:
“Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.”
Bathija added that the company is in talks with potential investors. It has recently hired Kroll as its financial advisor and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors, the statement says.
According to Vauld CEO, it also intends to apply to the Singapore courts for a moratorium, which implies a suspension of the commencement of any proceedings against the relevant companies in order to give the company breathing space to carry out the proposed restructuring exercise.”
Several companies have made announcements regarding the suspension of withdrawals on tier platforms this crypto winter. Last week as TheCoinRise reported, crypto broker Voyager Digital suspended trading, deposits, withdrawals, and loyalty rewards. Moreover, in June, companies like Celsius Network and Babel Finance also came up with bad news of suspending withdrawals.