Singaporean Crypto Exchange Vauld Suspends All Withdrawals, Trading and Depositsby Fintech News Singapore July 5, 2022
Singapore-based crypto platform Vauld announced that it will suspend all withdrawals, trading and deposits on its platform with immediate effect.
Vauld said in a statement that it is facing financial challenges as it had to contend with customer withdrawals in excess of US$197.7 million since 12 June 2022.
The crypto lender blamed the decline of the cryptocurrency market that was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network’s pausing of withdrawals, and Three Arrows Capital defaulting on their loans as reasons for its woes.
Vauld added that it has engaged the services of Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore respectively.
The beleaguered firm is currently in discussions with potential investors into the Vauld group of companies.
Vauld intends to apply to the Singapore courts for a moratorium to carry out the proposed restructuring exercise.
Darshan Bathija, Chief Executive Officer of Vauld said,
“Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyse all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.
We seek the understanding of customers of the Vauld platform that we will not be in a position to process any new or further requests or instructions in this regard. Specific arrangements will be made for customer deposits as may be necessary for certain customers to meet margin calls in connection with collateralised loans.”
Featured image: Edited from Unsplash