Billions of dollars of value have been wiped off the cryptocurrency market in the previous few weeks. Firms within the industry are feeling the pain. Lending and trading firms are facing a liquidity crisis and plenty of firms have announced layoffs.
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Crypto lender Vauld on Monday paused all withdrawals, trading and deposits on its platform and is exploring potential restructuring options, the corporate said.
Vauld CEO Darshan Bathija said in a blog post on Monday that the corporate is facing “financial challenges” attributable to “volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the present market climate” which has led to customers withdrawing greater than $197.7 million from the platform since June 12.
The Singapore-based company said it’s working with its financial and legal advisors to “explore and analyse all possible options, including potential restructuring options, that may best protect the interests of Vauld’s stakeholders.”
Crypto lending firms resembling Vauld have faced liquidity issues. Celsius last month paused withdrawals for purchasers citing “extreme market conditions.”
Vauld said it’s “in discussions with potential investors” in the corporate.
The corporate said it has hired Kroll Pte Limited as its financial advisor, in addition to Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore respectively.