Cryptocurrency exchange Vauld on Monday informed it had suspended all withdrawals, trading and deposits on its platform with immediate effect. The Singapore-based company said it was exploring restructuring options with its financial and legal advisors.
Volatile Market Conditions Blamed For Financial Challenges
The exchange’s team informed it facing financial challenges due to several reasons ongoing in the crypto market. Financial difficulties of business partners is affecting us, it said.
“The Vauld management wishes to inform that we are facing financial challenges despite our best efforts. This is due to a combination of circumstances such as the volatile market conditions. And the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals.”
Vauld informed that customer withdrawals in the last two months amounted to $197.7 million. The withdrawals began around June 12, when the cryptocurrency market was triggered by a collapse of Terraform Lab’s UST. In the recent weeks, the crisis around Celsius network’s pausing withdrawals, and Three Arrows Capital defaulting on their loans made it worse.
Vauld Considering Restructuring Options
The Vault management said it was working with financial and legal advisors to explore and analyze all possible options. The options include a potential restructuring move, that would best protect the interests of Vauld’s stakeholders, it added.
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Source: https://coingape.com/singapore-based-crypto-exchange-vauld-suspends-withdrawals-trading/