One more crypto lender, Vauld, halts withdrawals as the market crash accepts its toll

One more crypto lender, Vauld, halts withdrawals as the market crash

July 5, 2022: -On Monday, the company said that Crypto lender Vauld halted all withdrawals, trading, and warranties on its platform and is looking for potential restructuring options.

On Monday, the Vauld CEO Darshan Bathija said in a blog post that the company is facing “financial challenges” because of the “volatile market conditions, the difficulties of our key business partners inevitably affects the current market climate and us,” leading to customers withdrawing over $197.7 million from the platform from June 12.

The Singapore-based company said it works with its financial and legal advisors to “explore and analyze all possible options, which include potential restructuring options, that would protect the interests of Vauld’s stakeholders.”

Vauld’s move to pause withdrawals comes below three weeks following CEO Bathija says that the company “continues to operate as usual despite volatile market conditions.” On June 16, Bathija said withdrawals were being “processed as usual, and this continues to be the case in the future.”

But Vauld has become the recent victim of the increase in cryptocurrency prices this year. Bitcoin has had its worst quarterly performance since 2011 in the second quarter. Billion dollars were wiped off the value of the cryptocurrency market in the three months.

The market crash has exposed flaws in several cryptocurrency projects and business models. In May, algorithmic stablecoin terraUSD collapsed, which took down its sister token luna. Therefore, central cryptocurrency hedge fund Three Arrows Capital decreased into liquidation after defaulting on a more than $660 million loan from Voyager Digital.

Crypto lending firms like Vauld have faced liquidity issues. Celsius last month paused withdrawals for customers who cited “extreme market conditions.”

Vauld said it is “in discussions with potential investors” in the company.

The company added that it had hired Kroll Pte Limited as its financial advisor and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its advisors in India and Singapore.

Editor's Choice

Posts You Might Like

An Inspiring Teacher | Sue Grant

Sue Grant built an impactful career in cause marketing within the nonprofit industry. At the height of her career, equipped with 25 years of invaluable experience, she followed her heart’s calling. She founded The Literacy Project to serve struggling, at-risk children in unfortunate circumstances.

Bringing A Change | Shirley Wang

Shirley Wang has unwavering opinions and a strong vision for the design of Plastpro’s products and the standards to which they must be manufactured. She is an out-of-the-box but also efficient thinker, and this allows her to creatively devise viable solutions when it comes to meeting customers’ needs.

The-corporate-magazine-15

Leave us a message

Subscribe

Fill the form our team will contact you

Advertise with us

Fill the form our team will contact you​