Coinbase-Backed Vauld Halts Withdrawals, Deposits, and Trading

Singapore-based cryptocurrency exchange Vauld is the latest cryptocurrency platform to halt all withdrawals, deposits, and trading, citing “financial challenges” in the midst of persistently bad market circumstances.

The CEO of the cryptocurrency platform, Darshan Bathija, stated today in a blog post that the platform is “facing financial challenges” as a result of a combination of factors. These factors include the financial difficulties of their business partners as well as the current market uncertainty, which has led to a significant amount of customer withdrawals that have exceeded 197.7 million USD since June 12.

Bathija stated that “As such, we have considered that it would be in the best interests of stakeholders to take immediate action in the circumstances,” and went on to say that they will be working with financial and legal advisors in order to explore all possible options, including restructuring, that can assist the company in overcoming these financial difficulties.

A moratorium is an official term of delay in the fulfillment of a legal obligation or the payment of a debt. He also stated that Vauld wants to apply to the Singapore courts for a moratorium, which would give the company “breathing space” to carry out the proposed restructuring procedure.

Bathija continued by saying, “In the meantime, we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect” “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 was established in 2018, and it offers users a centralized platform through which they may purchase, lend, borrow, and exchange cryptocurrency assets. The cryptocurrency trading platform has its headquarters in Singapore, while the majority of its staff is located in India.

Due to the current crypto market crash, which has had a negative impact on the performance of all cryptocurrency platforms, Vauld stated on June 21 that it has terminated the employment of thirty percent of its workers.

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The venture arm of prominent cryptocurrency exchange Coinbase, Pantera Capital, Valar Ventures, CMT Digital, Gumi Cryptos, Compound Labs founder Robert Leshner, and Cadenza Capital are among the noteworthy names in the cryptocurrency sector that have provided financial support to the exchange.