Singapore-based crypto exchange Vauld is the latest crypto platform to suspend all withdrawals, deposits, and trading citing “financial challenges” amid lingering sour market conditions.
In a blog post today, CEO Darshan Bathija said that the crypto platform is “facing financial challenges” due to a mix of factors including the financial difficulties of their business partners and the current market uncertainty that has led to a significant amount of customer withdrawals — exceeding USD 197.7m since June 12.
“As such, we have considered that it would be in the best interests of stakeholders to take immediate action in the circumstances,” Bathija said, adding that they will be working with financial and legal advisors in order to explore all possible options, including restructuring, that can help the company address these financial difficulties.
He also said that Vauld intends to apply to the Singapore courts for a moratorium, an official period of delay in the performance of a legal obligation or the payment of a debt, which would give the company “breathing space” to carry out the proposed restructuring exercise.
“In the meantime, we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect,” Bathija added. “We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors.”
Founded in 2018, Vauld enables customers to buy, lend, borrow and trade crypto assets from a unified platform. The crypto exchange is headquartered in Singapore with most of its workforce based in India.
On June 21, Vauld announced that it has laid off 30% of its workforce amid the recent crypto meltdown that has adversely affected the performance of all crypto platforms.
The exchange is also backed by some of the more notable names in the crypto industry, including the venture arm of major crypto exchange Coinbase, Pantera Capital, Valar Ventures, CMT Digital, Gumi Cryptos, Compound Labs founder Robert Leshner, and Cadenza Capital.
Source: Cryptonews
