Singapore-based crypto trading platform Vauld has joined the ranks of Celsius, Babel, and Voyager Digital in halting withdrawals, trading, and deposits amid the ongoing crypto market turmoil.
According to the blog post, the company is facing financial troubles as the market crash led to withdrawals in excess of $197.7M since June 12.
Vauld states that the downfall of the TerraUSD stablecoin, Celsius’ decision to pause withdrawals, and Three Arrows Capital’s troubles were the catalysts for the market crash.
Not only the market collapse, but the financial difficulties of their crucial business partners had an impact on Vauld’s financial conditions.
And analyzing all options, Vauld has now hired Kroll Pte Limited as its financial advisor, and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP are its legal advisors in India and Singapore, respectively.
Vauld is also considering potential restructuring options, “that would best protect the interests of Vauld’s stakeholders.”
The team is also currently in talks with prospective investors for the Vauld group of companies.
They aim to apply for a moratorium at the Singapore courts, “i.e. a suspension of the commencement or continuation of any proceedings against the relevant companies” so that they get time to carry out the envisaged restructuring.
Despite halting some of the operations, Vauld will establish some arrangements for a few users for customer deposits in order to meet margin calls in connection with collateralized loans.
Last month, the company even had to cut down its workforce by a whopping 30% due to the crypto winter so most of the community already expected this outcome for the platform.
Also Read: Voyager Digital Suspends Trading, Withdrawals, Deposit Services
Vauld CEO Darshan Bathija stated, “Further updates on material developments will be provided at the appropriate juncture. We seek your understanding and patience in the meantime.”
Also Read: How Celsius crashed Crypto Market?
