Crypto exchange Vauld has suspended all withdrawals, trading and deposits on its platform with immediate effect, citing financial challenges.
“…we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect,” said Vauld CEO Darshan Bhatija, adding that the company expects this move to facilitate exploration of the suitability of potential restructuring options, together with our financial and legal advisors.
Seeking support and understanding of customers, Bhatija further said the exchange will not be able 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,” he said in a note on Monday.
Bhatija attributed the company’s financial challenges to a combination of circumstances such as the volatile market conditions, the financial difficulties of its key business partners as well as the current market climate which has led to a significant amount of customer withdrawals.
Withdrawals have been over $197.7 m since 12 June 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 said.
Vauld has engaged the services of Kroll as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore as its legal advisors in India and Singapore, respectively.
Bhatija said the company is also in discussions with potential investors in the Vauld group of companies and plans to apply to the Singapore courts for a moratorium for suspension of the commencement or continuation of any proceedings against the relevant companies to give it breathing space to carry out the proposed restructuring exercise.
July 04, 2022