Coinbase-Backed Platform Vauld Suspends Operations
Vauld, a lending platform backed by Coinbase, has halted transactions, trading, and withdrawals due to the ongoing slump. As the market situation continues to worsen, exchanges and lending platforms are facing financial difficulties.
In a corporate statement released on Vauld’s official website, the company announced the decision to suspend withdrawals and elaborated on the situation.
The announcement stated that the lending platform was facing financial strain due to market volatility and the current market sentiment. Vauld's business partners are financially troubled, which, in turn, has also affected Vauld.
“We have made the difficult decision to suspend 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,” Darshan Bathija, the CEO of Vauld, wrote in the corporate statement.
Vauld’s statement also revealed that the platform saw excessive withdrawals, which amount to $197 million. These withdrawals surged after June 12, 2022, following the TERRA/LUNA disaster and other major setbacks.
“...[the] amount of customer withdrawals [is] in excess of a $197.7 m since 12 June 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,” Vauld’s statement read.
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To address the situation, Vauld has appointed financial as well as legal advisors from India and Singapore. Kroll Pte Limited will look over the financial aspects while Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP will be the legal advisors.
All transactions have been suspended from July 4th, 2022. However, special arrangements will be made for users who want to deposit or place a margin call on their collateralized loans.
Vauld, which opened in 2018, is a platform that enables users to buy, sell, trade, lend, and borrow crypto assets. Even though Vauld is headquartered in Singapore, most of its employees are Indians. Interestingly, Vauld is backed by some big names like Coinbase, Valar Ventures, Pantera Capital, Cadenza Capital, and more.
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