24/7 Cryptocurrency News

How Safe Are Funds On Vauld, And Other Crypto Exchanges?

The funds are managed by BitGo through a multi signature system, which ensures that funds safe Vauld.
Published by
How Safe Are Funds On Vauld, And Other Crypto Exchanges?

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.

Advertisement

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.

Advertisement

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.

Advertisement

Share
Anvesh Reddy

Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at anvesh@coingape.com or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

CEA Industries’ BNB Holdings Reach 480K as Binance Coin Hits New ATH of $1,300

BNB has surged to a record $1,300, overtaking XRP in market value, as CEA Industries…

October 7, 2025
  • 24/7 Cryptocurrency News

Peter Brandt Predicts XRP Could Drop to $2.2 If This Happens

Veteran trader Peter Brandt has dropped another XRP analysis, in which he revealed what could…

October 7, 2025
  • 24/7 Cryptocurrency News

Fed’s Stephen Miran Says He’s ‘Sanguine’ on Inflation Outlook as He Backs More Rate Cuts

Federal Reserve Governor Stephen Miran has again suggested that he isn't worried about the inflation…

October 7, 2025
  • 24/7 Cryptocurrency News

S&P Launches Crypto 50 Index But There’s A Catch

S&P Dow Jones Indices has introduced a new crypto index called the S&P Digital Markets…

October 7, 2025
  • 24/7 Cryptocurrency News

NYSE Owner ICE to Invest $2B in Polymarket as Interest in Prediction Markets Heats Up

Crypto predictions platform Polymarket has secured a strategic investment from New York Stock Exchange (NYSE)…

October 7, 2025
  • 24/7 Cryptocurrency News

Expert Predicts SOL ETF Approval This Week as Solana ETPs Break All-Time Record

An expert has predicted that the U.S. SEC could finally approve the pending SOL ETF…

October 7, 2025