Sign Up on MEXC
As the management of Vauld ties to come up with a solution to the financial challenges, the situation raises doubts over exchange security. Earlier on Monday, the Singapore-based exchange suspended all withdrawals, trading and deposits on its platform.
Funds Safe On Vauld
Meanwhile, as the overall cryptocurrency ecosystem tries to cope with the volatile environment, calls for securing assets off the exchanges are rising. In the case of Vauld, its funds are managed through a multi signature system with the co-founders as signatories.
Also, Vauld claims that almost all of its funds are kept in a cold wallet. This means it is not connected to the internet and thus is almost immune to external attacks, it explained.
As Vauld is also a lending platform, the user funds are moved from user wallets to a centralized lending pool. From this pool, the money is lent to borrowers. Vauld’s centralized lending pool is stored with BitGo, which is a top player in the cryptocurrency custody segment.
The funds are managed by BitGo through a multi signature system, which ensures that funds safe Vauld. However, to be prepare for the worst the funds on the lending pool are also insured for $100 million dollars against potential threats.
Plans To Setup A Dedicated Insurance Fund
The exchange was also planning to set up a dedicated insurance fund.
“We are also in the process of setting up our own dedicated insurance fund where we will channel a part of profits to protect our users against any risks.”
In the backdrop of its decision to suspend user activity, it also remains to be seen if Vauld would go for restructuring. The exchange is funded by top cryptocurrency exchange Coinbase as well as entrepreneur Peter Thiel.
Just around an year ago, Vauld raised $25 million in funding from Peter Thiel’s Valar Ventures.
- Michael Saylor, Crypto Executives Meet to Push for Strategic Bitcoin Reserve Bill
- U.S. House Reattaches Anti-CBDC Bill to CLARITY Act Ahead of Senate Review
- Breaking: UK and US to Align Crypto Regulations Amid Trump’s Pro-Crypto Agenda
- Breaking: Binance Nears Deal With U.S. DOJ To Drop Compliance Monitor, BNB Reaches New ATH
- Pro-Crypto Stephen Miran Sworn in as Fed Governor Ahead of FOMC Meeting
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
- Solana Price Set for a 25% Jump as Open Interest Nears a $20 Billion Milestone
- Bitcoin Price Prediction as Fed Decision Nears — Dump Before the Next Rally?
- Ethereum Price Prediction As Standard Chartered Says Treasury Buying Will Boost ETH Over Rivals
- Solana Price Prediction: Analyst eyes $1,250 as Galaxy Digital and Forward Industries Intensify Accumulation
