Amid the prevailing crypto market tumult, crypto trading and lending platform Vauld has stopped customer withdrawals from Monday.
Darshan Bathija, the CEO of Vauld Crypto Exchange wrote in a blog post that this is due to a combination of circumstances, such as the volatile market conditions.
“The financial difficulties of our key business partners is inevitably affecting us, and the current market climate, which has led to a significant amount of customer withdrawals in excess of a $197.7 m since June 12, 2022 when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST Stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans,” he wrote.
Vauld is now considering reorganisational strategies. To that purpose, it has appointed Kroll as its financial advisor, Cyril Amarchand Mangaldas as its legal counsel in India, and Rajah & Tann Singapore LLP as its legal advisor in Singapore.
“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,” Bathija added.
According to Bathija, Vauld is actively speaking with possible investors.
“We intend to apply to the Singapore courts for a moratorium i.e., a suspension of the commencement or continuation of any proceedings against the relevant companies, so as to give us breathing space to carry out the proposed restructuring exercise,” he added.
High-profile investors, such as Peter Thiel’s Valar Ventures, Coinbase Ventures, and Pantera Capital support Vauld (previously known Bank of Hodlers). To date, the company has secured $27.5 million in investment.
Notably, last month on June 16, 2022, Vauld said that it continues to operate as usual despite volatile market conditions.
“We do not have any exposure to Celsius or Three Arrows Capital, and we remain liquid despite market conditions. Over the last few days, all withdrawals were processed as usual and this will continue to be the case in the future,” the company had then said.
Incidentally, Vauld had also laid off laid off around 30 per cent of its workforce, as crypto prices began crashing over the past few weeks, along with changes in taxation regime and the resultant downturn in trade volumes.
Vauld has its headquarters in Singapore, while the majority of its staff is based in India.
