As it considers restructuring options, Singapore-based cryptocurrency lender Vauld has suspended all deposits, trading, and withdrawals from its platform. Since June 12, when the cryptocurrency market crash started to intensify, Vauld has seen withdrawals totaling almost $198 million. The next day, cryptocurrency lender Celsius paused withdrawals on its platform.
Vauld to Restructure
According to a blog post published on Monday, the company is looking into possible restructuring possibilities as a way to deal with the issues it is facing.
CEO Darshan Bathija noted that the business had experienced significant customer withdrawals totaling $198 million since June 12. The collapse of TerraUSD, Celsius‘ withdrawal freeze, and Three Arrows Capital’s loan defaults, as well as the financial difficulties of business partners, have made things difficult for Vauld, he noted.
“As such, we have considered that it would be in the best interests of stakeholders to take immediate action in the circumstances,” Bathija said.
In its most recent fundraising round, which was led by Peter Thiel’s Valar Ventures, Vauld raised $25 million in July 2021. Along with Pantera Capital and Coinbase Ventures, the CEO of Compound Labs, Robert Leshner, is one of the company’s investors.
According to the blog, Vauld has menacingly selected Kroll’s Asia Pacific consulting division as its financial advisor to investigate possible reorganization possibilities. Additionally, it has retained the legal counsel of Rajah & Tann in Singapore and Cyril Amarchand Mangaldas in India.
About two weeks ago, Vauld made a grave warning after announcing plans to reduce CEO remuneration by 50% . Furthermore, Vauld said last month that 30% of its workforce, the most of whom were based in India, would be laid off. Since Celsius was the first bitcoin company to do so, an increasing number of companies have stopped allowing activity on their platforms, making customers concerned about their money.
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Source: https://coinpedia.org/news/crypto-lending-firm-vauld-suspends-transactions-after-198-million-worth-of-withdrawals/