- Vauld has raised around $27M from investors to expand its platform.
- The company hired Kroll Pte Limited as a financial advisor.
- Vauld intends to apply a moratorium in the Singapore courts.
Today, Singapore-based cryptocurrency lending and exchange venture Vauld has halted all withdrawals, trading, and deposits on its platform As it explores “financial difficulties”. The company is looking into possible restructuring possibilities as a way to deal with the issues it is facing.
In the meantime, we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect.
— Vauld (@VauldOfficial) July 4, 2022
Terraform Lab’s UST stablecoin’s failure, the Celsius network’s suspension of withdrawals, and Three Arrows Capital’s default on its debts caused the Vauld trading platform to stop all deposits and withdrawal options. The decision was made at a time when the platform was experiencing financial difficulties and considering a possible restructuring.
Vauld intends to apply Moratorium
Vauld which has raised approximately $27 million from investors including Pantera Capital, Coinbase Ventures, and Peter Thiel-backed Valar Ventures, claimed that the market collapse had forced users to withdraw about $198 million since June 12. The next day, cryptocurrency lender Celsius paused withdrawals on its platform.
The company hired Kroll Pte Limited as a financial advisor and it recruited Rajah & Tann Singapore LLP and Cyril Amarchand Mangaldas as legal advisors in Singapore and India. Vauld intends to apply a moratorium in the Singapore courts, Darshan Bathija, Vauld founder and chief executive said;
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.
Last month, Vauld announced that 30% of its workforce, the majority of whom were based in India, would be laid off. Vauld, a company founded in 2018 by Bathija and Sanju Kurian, offers a wide range of solutions to cryptocurrency investors, such as fixed deposits and platforms for asset-backed lending and borrowing.
