Over the past few weeks, billions of dollars have been wiped from the cryptocurrency market. Companies in the industry feel pain. Lending and trading firms are facing a liquidity crisis and many firms have announced layoffs.
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Cryptocurrency lender Vauld on Monday suspended withdrawals, trading and deposits on its platform and is exploring potential restructuring options, the company said.
Vauld CEO Darshan Batija said in a blog post on Monday that the company is facing “financial challenges” due to “volatile market conditions, the financial difficulties of our key business partners that are inevitably affecting us, and the current market climate,” leading to that customers have withdrawn more than $197.7 million from the platform since June 12.
The Singapore-based company said it is working with its financial and legal advisors to “examine and analyze all possible options, including potential restructuring options, that will best protect the interests of Vauld’s stakeholders.”
Crypto lending firms like Vauld have run into liquidity issues. Celsius suspended withdrawals for customers last month citing “extreme market conditions”.
Wold said the company is “discussing this with potential investors.”
The company said it has hired Kroll Pte Limited as a financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisors in India and Singapore, respectively.