Another crypto lender Vauld is delaying withdrawals as the market crash has had a major impact
Crypto Lender Vauld on Monday suspended all withdrawals, trades, and deposits and is examining possible restructuring options, the company said.
Vauld CEO Darshan Bathija said in a blog post on Monday that the company was facing “financial challenges” due to “volatile market conditions, the financial crisis of our key business partners is definitely affecting us, and the market climate” that has led customers. releases more than $ 197.7 million on the platform since June 12.
The Singapore-based company said it was working with its financial and legal advisers to “evaluate and analyze all possible options, including possible restructuring options, which would better protect the interests of Vauld participants.”
Vauld’s move to suspend withdrawals comes less than three weeks after CEO Bathija said the company “continues to operate as normal despite market volatility.” In a June 16 blog post, Bathija said the withdrawal was “still being processed as usual and this will continue to be the case in the future.”
But Vauld has become the latest victim of cryptocurrency prices this year. Bitcoin has had its worst quarterly performance since 2011 in the second half. Billions of dollars were cleared of cryptocurrency market value over a three-month period.
Market crashes have exposed flaws in many cryptocurrency projects and business models. In May, the algorithmic stablecoin terraUSD collapsed taking its sister luna token. At the time, the cryptocurrency hedge fund Three Arrows Capital fell into disrepair after paying off more than $ 660 million in loans from Voyager Digital.
Crypto lending firms such as Vauld have faced liquidity problems. Celsius last month halted withdrawals from customers citing “extreme market conditions.
Vauld said he was “in talks with potential investors” for the company.
The company has said it has hired Kroll Pte Limited as its financial advisor, with Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisers in India and Singapore respectively.
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