Vauld has suspended all customer withdrawals, according to an announcement the Singapore-based crypto platform published on Monday.
In its notice to customers, the company cites financial challenges occasioned by the ongoing crypto market turbulence, including problems at “key business partners.”
According to the lending platform, crypto winter and the turmoil that has followed the collapse of Terra’s UST stablecoin. Trouble for crypto lender Celsius and crypto hedge fund Three Arrows Capital’s liquidation, have also combined to spook customers.
Other crypto firms in trouble include BlockFi, Voyager Digital, Babel Finance and CoinFLEX.
For Vauld, extreme fear among investors has seen customers withdraw nearly $198 million since 12 June.
Commenting on this, co-founder and CEO Darshan Bathija noted that the Vauld management believes halting transactions is “in the best interest of all stakeholders.”
We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors.”
Vauld to apply for a moratorium
For its potential restructuring, Vauld has tapped Kroll Pte Limited as a financial advisor. It also has hired two other firms as legal advisors – Cyril Amarchand Mangaldas in India and Rajah & Tann Singapore LLP in Singapore.
Bathija also noted that his platform is currently engaging potential investors in the different companies under the Vauld group. The platform will also seek the help of the courts as it eyes restructuring options.
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.”
While it has paused all withdrawals, trading and deposits, the platform is open to making particular exemptions for some customers.
The post Vauld halts customer withdrawals, exploring restructuring options appeared first on Invezz.