Cryptocurrency exchange Vauld has suspended all withdrawals, trading and deposits with immediate effect today.
“We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors,” the crypto exchange said in a statement.
Vauld said it is “facing financial challenges” amid the crypto market meltdown, despite its “best efforts”.
Crypto markets have tumbled this year as investors worried about rising interest rates. Bitcoin, the biggest cryptocurrency, has slumped some 70 per cent since its November record of $69,000, dragging down the overall market.
“This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7 million since June 12, 2022, when 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,” the exchange added.
“We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors,” the company also stated after halting investors’ transactions.
In addition, Vauld has engaged the services of Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisors in India and Singapore respectively.
“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,” the company’s statement further read.
Vauld is backed by Valar, Pantera Coinbase, CMT Digital and others.