Crypto lender Vauld halts withdrawals as stock market crash takes its toll
Billions of dollars of value have been wiped from the cryptocurrency market over the past few weeks. Companies in the sector are feeling the pain. Lending and trading companies are facing a liquidity crunch and many companies have announced layoffs.
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Crypto lender Vauld suspended all withdrawals, trades and deposits on its platform on Monday and is exploring potential restructuring options, the company said.
Vauld CEO Darshan Bathija said in a blog post on Monday that the company is facing “financial challenges” due to “volatile market conditions, financial difficulties of our major trading partners which inevitably affect us and the current market climate” which has led to customers withdrawing over $197.7 million from the platform since June 12.
The Singapore-based company said it was working with its financial and legal advisers to “explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.”
Crypto credit companies such as Vauld have faced liquidity issues. Last month, Celsius suspended withdrawals for customers citing “extreme market conditions”.
Vauld said he was “in discussions with potential investors” in the company.
The company said it has hired Kroll Pte Limited as financial adviser, along with Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisers in India and Singapore respectively.