By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

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 also made the announcements via Twitter in a thread

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. 

You might be interested in: 3AC's Su Zhu is Selling Off $35M Singapore House

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. 

You might be interested in: FTX CEO Bankman-Fried says some smaller exchanges are “secretly insolvent”

The information provided on DecentReviews does not constitute investment advice, financial advice, trading advice, or any other sort of advice. Do not treat any of the websites content as such. DecentReviews does not recommend that any cryptocurrency or blockchain asset should be bought, sold, or held by you. Conduct your own due diligence and consult your financial advisor before making any investment decisions.

Get free Web3 analysis and news in your inbox

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Platforms/tools Mentioned:

There are no products mentioned.
This page may contain affiliate links. Learn more