BENGALURU: Crypto lending platform Vauld on Monday suspended all withdrawals, trading and deposits on its platform citing volatile market conditions and financial difficulties of its key business partners. This announcement comes within two weeks of reducing its headcount by about 30%. Headquartered in Singapore, with a product and tech office in India, the crypto platform was started in 2018.
Darshan Bathija, CEO, Vauld, said in a blog post that the current market climate has led to a significant amount of customer withdrawals in excess of $197.7 million since 12 June 2022. The decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals and Three Arrows Capital defaulting on their loans.
Vauld is also considering potential restructuring options. It has engaged the services of Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore, respectively. The crypto exchange is in discussions with potential investors into the Vauld group of companies. It is also planning to apply to the Singapore courts for a moratorium.
Backed by Coinbase Ventures, Vauld while laying off its employees had said that with its team of over 100 employees the platform is going to ship significant products this year. Vauld serves over 8 lakh clients. Interestingly, only a fortnight ago, the exchange said it will soon ship significant products and announced its plan for the next six months.
The crypto industry has been struggling with a 30% tax on gains, crypto winter and 1% TDS. Edul Patel, CEO and co-founder of Mudrex, a global crypto investment platform, told TNIE that the past few months have been a bit troubling for the cryptocurrency spectrum. “A few simultaneous instances, such as a hedge fund liquidation and stablecoin de-pegging, provided fodder for the crisis. It pushed some exchanges and platforms against the wall. However, with the space gradually maturing, we will likely see appropriate checks and balances in place,” he added.