Vauld, a cryptocurrency lender, paused all withdrawals, trading, and deposits on its platform on Monday and said it is looking into potential restructuring options.
In a blog post on Monday, Vauld CEO Darshan Bathija stated that the company is facing “financial challenges” as a result of volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate, which has resulted in customers withdrawing more than $197.7 million from the platform since June 12.
The Singapore-based company stated that it is working with its financial and legal advisors to explore and analyze all possible options, including potential restructuring options, that would best protect Vauld’s stakeholders’ interests.
Vauld’s decision to halt withdrawals comes less than three weeks after CEO Bathija stated that the company “continues to operate as usual despite volatile market conditions.” Bathija stated in a blog post on June 16 that withdrawals were being “processed as usual and will continue to be the case in the future.”
However, Vauld has become the latest victim of this year’s cryptocurrency price drop. In the second quarter, Bitcoin had its worst quarterly performance since 2011. During the three months, the cryptocurrency market lost billions of dollars in value.
A number of cryptocurrency projects and business models have been exposed as flawed as a result of the market crash. TerraUSD, an algorithmic stablecoin, collapsed in May, bringing down its sister token luna. Meanwhile, Three Arrows Capital, a major cryptocurrency hedge fund, went bankrupt after failing to repay a $660 million loan from Voyager Digital.
Vauld, a cryptocurrency lending firm, has experienced liquidity issues. Celsius halted customer withdrawals last month, citing “extreme market conditions.”
Vauld stated that it is in talks with potential investors about the company.
The firm announced the appointment of Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal counsel in India and Singapore, respectively.
