The embattled cryptocurrency industry is once again under stress after Singapore-based loan, and trading platform Vauld announced on Monday that it would halt withdrawals and trading and seek new investors.
Despite its best efforts, Vauld said this mainly had arisen because of increasing “financial problems.” Vauld stated that the company announced on its website that the suspension took effect immediately.
Vauld wants to get a “breathing space to carry out the proposed restructuring exercise” by asking the Singaporean courts for a moratorium.
Key Highlights:
- In Vauld’s opinion, the suspension would make it easier for them to explore the viability of various restructuring solutions with their financial and legal consultants.
- According to Vauld’s CEO, the current market environment has caused large client withdrawals totaling over $197.7 m since June 12, 2022.
- Vauld reported in June that 30% of their workers had been let go.
The exchange further stated that particular plans would be developed for client deposits for specific customers to cover margin calls in conjunction with collateralized loans.
In a statement, the company said, “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 has already cut back on marketing costs, stalled hiring initiatives, slashed executive pay in half, and halted most vendor engagements.
According to Vauld, it is in talks with possible investors. In addition, it has appointed Kroll Pte Limited as its financial advisor, Cyril Amarchand Mangaldas, and Rajah & Tann Singapore LLP as its legal consultants in India and Singapore, respectively.
Vauld was founded in 2018 by Bathija and Sanju Kurian. As of July of that year, the company has secured $27 million from VC companies such as Pantera Capital, Coinbase Ventures, CMT Digital, Gumi Cryptos, Robert Leshner, and Cadenza Capital.
