Vauld “Follows The Trend” Blocks Withdrawals

Vauld, a Singapore-based cryptocurrency trading and lending platform, has become the latest crypto company to halt customer withdrawals amid market turmoil.

Vauld is the next crypto company to block withdrawals

CEO Darshan Bathija said in a blog post on July 4 that the company made the difficult decision to halt all withdrawals, trading and deposits on the Vauld platform, will take effect immediately.

According to Bathija, Vauld is being challenged by a combination of factors, including volatile markets and the financial difficulties of business partners. Since June 12, the platform has seen a massive increase in customer withdrawals by nearly $198 million.

To remedy the current situation, the company is targeting a number of potential restructuring options for the company. To that end, the company quickly hired financial and legal advisors in India and 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 said

Vauld is currently also in discussions with potential investors, according to Bathija.

“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,” 

Bathija added

A well-known group of investors in the market, including billionaire Peter Thiel’s Valar Ventures, Coinbase Ventures, and Pantera Capital, support the cryptocurrency lending platform Vauld (previously Bank of Hodlers). So far, the business has raised $27.5 million.

The information was released less than a month after Vauld declared on June 16 that the business will carry on as usual despite erratic market conditions. The crypto company asserted at the time that Celsius and Three Arrows Capital were unrelated to the business.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

CoinCu News