Cryptocurrency Exchange Vauld Suspends All Operations Due To ‘Financial Crisis’; Know more

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Cryptocurrency exchange Vauld has suspended operations, including withdrawals, exchanges and deposits on its platforms, the company said in a statement on Monday, June 4. Vauld said this happened mainly due to mounting “financial challenges”, despite his best efforts. The suspension is effective immediately, Vauld said in the company’s announcement on its website.

In the statement available on its website, CEO and co-founder Darshan Bathija wrote: “Vauld management would like to advise that we are facing financial challenges despite our best efforts. This is due to a combination of circumstances such as volatile market conditions, the financial difficulties of our major trading partners which inevitably affect us, and the current market climate which has led to a significant amount of customer withdrawals exceeding 197.7 million since June 12, 2022…”

This was when the cryptocurrency market faced an unpredictable decline due to the collapse of TerraUSD (UST), which was replaced by the Celsius network which suspended withdrawals and Three Arrows Capital defaulted on its loans.

Bathija said Vauld is currently with potential investors in the Vauld group of companies. “We intend to apply to the Singapore courts for a moratorium, i.e. a stay of the initiation or continuation of any proceedings against the companies concerned in order to give us breathing space to complete the case. ‘proposed restructuring exercise,’ read its statement.

“In the meantime, we have taken the difficult decision to suspend all withdrawals, transactions and deposits on the Vauld platform with immediate effect. We believe this will help facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors,” Bathija said in the statement.

“We are seeking to impress upon customers of the Vauld Platform that we will not be able to process any further requests or instructions in this regard. Specific provisions will be made for customer deposits that may be required for some customers to meet margin calls related to secured lending,” he added.

The Coinbase-backed platform said it had engaged the services of Kroll Pte Limited as financial adviser, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisers in India and Singapore respectively to deal with the crisis. “We are confident that with the advice of our financial and legal advisors, we will be able to find a solution that will best protect the interests of Vauld’s customers and stakeholders,” he said.

In June, Vauld announced it had laid off 30% of its workforce, with most employees from India. The company, which raised $27 million in July 2021, also said it cut marketing spending while cutting executive pay by 50%, citing the economic downturn.

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