Crypto lending platform Vauld has suspended all trading, withdrawals, and deposits on its platform as it explores potential restructuring.
The Singapore-based lender attributed this to “financial challenges” resulting from “a combination of circumstances such as volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate.”
“We have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect,” the company’s CEO Darshan Bathija announced in a statement today.
“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Vauld’s customers have withdrawn almost $198m since 12 June, when the crypto market staretd to “decline” as another crypto lender Celsius halted withdrawals, crypto hedge fund Three Arrows Capital defaulted, and stablecoin UST collapsed.
“We are confident that, with the advice of our financial and legal advisors, we will be able to reach a solution that will best protect the interests of Vauld’s stakeholders,” Vauld said.
The crypto market has experienced a sharp crash this year that has seen the prices of major cryptocurrencies plummet. Bitcoin is almost 60 per cent since the start of the year and about 70 per cent from its all-time high last year in a crypto winter that industry experts warn will drag prices down even lower and spark an “Armageddon.”