Coinbase-Backed Crypto Lender Vauld Suspends Withdrawals, Deposits

The crypto industry has been shaken by a series of collapses in recent months.

Coinbase-Backed Crypto Lender Vauld Suspends Withdrawals, Deposits

Photo Credit: Pexels/ Olya Kobsuseva

Vauld founder and chief executive Darshan Bathija said the startup is exploring restructuring options

  • Crypto lenders have been particularly affected by the crypto dip
  • Vauld said in June that it 'continues to operate as usual'
  • The company laid off 30 percent of its staff in June end

Vauld, a Singapore-based crypto trading and lending platform with most of its team in India, has become the latest crypto firm to halt customer withdrawals amid the unforgiving market din. CEO Darshan Bathija said in a blog post on Monday that the firm has "made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect." Vauld is struggling financially due to a combination of factors, including a volatile market and the financial difficulties of business partners, according to Bathija.

Since 12 June, the platform has seen customer withdrawals of nearly $198 million (roughly Rs. 1,562 crore), triggered by the implosion of the TerraUSD stablecoin, Celsius's decision to halt withdrawals and Three Arrows Capital's woes, said Bathija.

Vauld is open to potential restructuring options. To that end, the firm has hired Kroll as its financial advisor and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore, respectively.

"Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyse all possible options, including potential restructuring options, that would best protect the interests of Vauld's stakeholders," said Bathija.

Vauld is currently also in discussions with potential investors, according to Bathija.

"We intend to apply to the Singapore courts for a moratorium i.e. a suspension of the commencement or continuation of any proceedings against the relevant companies so as to give us breathing space to carry out the proposed restructuring exercise," he added.

Vauld is backed by a host of high-profile investors, including Peter Thiel's Valar Ventures, Coinbase Ventures and Pantera Capital. The firm has raised $27.5 million (roughly Rs. 217 crore) in total funding to date.

As highlighted in a Bloomberg report, Vauld's move arrives less than three weeks after the company said it "continues to operate as usual" and that it had "maintained a balanced and conservative approach to liquidity management." Shortly after that attempt to reassure customers, Vauld announced plans to cut 30 percent of its headcount.

Vauld's troubles echo those of crypto lenders Celsius Network and Babel Finance, which were forced to freeze withdrawals to conserve strained liquidity as markets tumbled.

What are the best tablets? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Cryptocurrency, Vauld, Crypto lender
Mi Smart Band 7 Pro to Offer GPS Support, Quick-Release Wristbands, Xiaomi Reveals
Read in: हिंदी
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News


Follow Us


© Copyright Red Pixels Ventures Limited 2022. All rights reserved.