Crypto Lender Vauld Becomes Latest Market Victim To Halt Withdrawals
The Singapore-based company issued a statement on Monday advising clients that it had sought legal counsel to “explore and analyze all possible options, including potential restructuring options.”
We have strived to be an excellent crypto lending platform. This has been our goal since day one. We are committed to finding the best resolution for our customers.
A message from @darshanbathija 🧵
— Vauld (@VauldOfficial) July 4, 2022
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Last month, Vauld said it would lay off 30% of its staff, emphasizing hiring and cutting executive pay in half.
According to the company’s CEO, Darshan Bathija, the Vauld Group is currently in talks with potential investors. It will ask the Singapore courts for a moratorium to give it breathing space for the restructuring.
“We believe this will facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors,” he added.
Vauld, which launched in 2018 offering digital asset trading, custody and crypto credit, raised $25 million in a Series A funding round in 2021. Among investors, Peter Thiel has founded Valar Ventures, Pantera Capital and Coinbase Ventures.
The suspension of services follows Voyager Digital, which did the same last week, accusing Three Arrows Capital of defaulting on its loans.
Major crypto lender Celsius suspended crypto withdrawals in June and brought in advisers to prepare for the restructuring.
The CoinLoan platform has also limited services and withdrawals in response to market turbulence. On July 4, the company said a spike in withdrawals prompted it to impose a withdrawal limit of $5,000 per day.