MEXCSingapore Based VAULD Suspends Withdrawals, What’s Next?
Cryptocurrency exchange Vauld on Monday informed it had suspended all withdrawals, trading and deposits on its platform with immediate effect. The Singapore-based company said it was exploring restructuring options with its financial and legal advisors.
“We have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect.”
Volatile Market Conditions Blamed For Financial Challenges
The exchange’s team informed it facing financial challenges due to several reasons ongoing in the crypto market. Financial difficulties of business partners is affecting us, it said.
“The Vauld management wishes to inform that we are facing financial challenges despite our best efforts. This is due to a combination of circumstances such as the volatile market conditions. And 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.”
Vauld informed that customer withdrawals in the last two months amounted to $197.7 million. The withdrawals began around June 12, when the cryptocurrency market was triggered by a collapse of Terraform Lab’s UST. In the recent weeks, the crisis around Celsius network’s pausing withdrawals, and Three Arrows Capital defaulting on their loans made it worse.
Vauld Suspends Withdrawals, Considering Restructuring Options
The Vault management said it was working with financial and legal advisors to explore and analyze all possible options. The options include a potential restructuring move, that would best protect the interests of Vauld’s stakeholders, it added.
Last week, crypto trading volumes in India plummeted after the government imposed a long-feared 1% tax on transactions. Trading volumes in the country’s largest exchanges more than halved within a space of few days. This sudden slump was observed after the tax went rule live starting July 1. The tax rule is part of the Indian government’s larger picture to dissuade the trade of cryptocurrencies in the country.
Meanwhile, as the Vauld management looks to come up with a solution, the next update could be around the user withdrawals. “We are currently in discussions with potential investors into the Vauld group of companies,” the company said in the announcement
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