Vauld, Coinbase-Backed Crypto Exchange, has just paused all transactions including withdrawals, deposits, and Trading
Singaporean cryptocurrency exchange Vauld is the most recent cryptocurrency platform to halt all withdrawals, deposits, and trading due to continuing unstable market conditions, citing “financial concerns”.
CEO Darshan Bathija wrote in a blog post today that the cryptocurrency platform is “faced with financial challenges” as a result of a number of factors, including the financial struggles of their business partners and the current market unpredictability, which has caused a sizable amount of customer withdrawals — more than USD 197.7 million since June 12 — and other factors.
Bathija stated, “As a result, we have considered that it would be in the best interests of stakeholders to take immediate action in the circumstances,” adding that they will be consulting with financial and legal advisors in order to explore all options, including restructuring, that can help the company deal with these financial challenges.
Additionally, he stated that Vauld planned to ask the Singaporean courts for a moratorium, which is a formal suspension of the performance of a legal duty or the payment of a debt. This would provide the business “breathing space” to carry out the envisaged restructuring procedure.
In the interim, Bathija continued, “We have taken the painful decision to immediately halt all withdrawals, trading, and deposits on the Vauld platform.” Together with our financial and legal consultants, we think this will make it easier to explore if alternative restructuring solutions are appropriate.
Vauld, a 2018 startup, offers consumers a unified platform through which they may buy, lend, borrow, and trade crypto assets. The majority of the cryptocurrency exchange’s personnel is situated in India, but its headquarters are in Singapore.
In response to the recent cryptocurrency crash that has negatively impacted the performance of all crypto platforms, Vauld stated on June 21 that it has let go of 30% of its personnel.
The venture arm of leading cryptocurrency exchange Coinbase, Pantera Capital, Valar Ventures, CMT Digital, Gumi Cryptos, Compound Labs founder Robert Leshner, and Cadenza Capital are just a few of the prominent investors who have funded the exchange.