Cryptocurrency exchange Vauld has suspended all withdrawals, trading and deposits on its platforms in view of rising “financial challenges”.
In a statement on its website, Vauld said the exchange has witnessed withdrawals above $197.7 million since 12th June 2022 when the crypto markets crash was triggered by the collapse of TerraUSD (UST), followed by Celsius Network pausing withdrawals and Three Arrows Capital defaulting on their loans.
The exchange said it is facing financial challenges due to several factors such as “the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate…”
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Vauld intends to apply for a moratorium in the Singapore courts to get a “breathing space to carry out the proposed restructuring exercise.”
Vauld further said in the statement that it has suspended all withdrawals, trading and deposits on the Vauld platform with immediate effect. “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 exchange said while adding that specific arrangements will be made for customer deposits for certain customers to meet margin calls in connection with collateralised loans.
Vauld said it is in discussion with potential investors. It 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.