Crypto Platform Vauld Stops Withdrawals, Deposits & Trading due to financial challenges
Crypto exchange platform, Vauld has now revealed that it has suspended all trading, withdrawals, and deposits on its platform due to financial challenges.
As per multiple media reports, there have been customer withdrawals of around $198 million since the 12th of July.
In a company statement, Darshan Bathija, CEO at Vauld, stated,
“We have made the difficult decision to suspend all withdrawals, trading, and deposits on the Vauld platform with immediate effect. We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors.”
“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 collateralized loans,” he added.
Vauld plans to appeal before the Singapore courts for the moratorium. Darshan said in a statement that we are confident that, with the advice of our legal and financial advisors, we will be able to reach a solution that will best protect the interests of Vauld’s stakeholders and customers.
Crypto entrepreneur and Coin Crunch India CEO Naimish Sanghvi turned to Twitter to express his disappointment with the decision.
Changpeng Zhao, CEO of crypto exchange platform Binance, also took to Twitter to alert users to be careful when using platforms that require VC funding.
The Singapore-headquartered crypto lending platform was founded in the year 2018 by Sanju Sony Kurian and Darshan Bhatija. The startup offers its users a customer-centric banking solution by leveraging blockchain.
Recently, the centralized finance (Ce-Fi) platforms which include Voyager, Celsius, and BlockFi, also revealed halting withdrawals.
Previously, on the 21st of June, Vauld revealed that it was reducing its workforce by 30% due to the current economic downturn.
Following the layoffs, ByBit, a Singapore-based cryptocurrency exchange, revealed that it would lay off 2000 employees, which would be around 30% of its workforce, as a part of its efforts to manage costs amid the crisis.
Earlier in the month of June, global crypto exchanges and firms, including Coinbase, Robinhood, Gemini, Crypto.com, BlockFi, and BitMex, revealed that they are downsizing their workforce due to the current crypto crisis led by uncertainties in the financial markets as a result of the macroeconomic factors such as the war in Europe, rising global inflation, and supply chain bottlenecks.
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