Coinbase-backed Vauld halts withdrawals
Vauld’s crypto exchange headquarters in Singapore, which serves customers in India, has suspended withdrawals, the company’s chief executive officer Darshan Bathija said in a blog post. The company has hired legal representatives in India and Singapore as it takes the initiative. Cyril Amarchand Mangaldas and Rajah & Tann will be representing the firm in India and Singapore, with Kroll being introduced as a financial advisor.
“We have made the difficult decision to suspend all withdrawals, trade, and invest in the Vauld platform immediately,” wrote Bathja. “We believe this will assist in assessing the suitability of potential restructuring options, as well as with our financial and legal advisers.”
This move comes as the crypto and financial markets around the world are hitting hard. Vauld said investors had disbursed nearly $ 200 million in the weeks leading up to the decision. The company has said it will apply for a stay in Singapore against any possible claims.
Vauld provided borrowing services in addition to operating as a trade, leaving it at high risk of market shock. The company said in a statement that the withdrawal was “caused by the collapse of UST stablecoin of Terraform Lab, the cancellation of the suspension of the Celsius Network, and Three Arrows Capital defaults.” In other words, the full domino effect of Crypto-related issues right now.
The development is a dramatic change of events for Vauld, his CEO said in the early days of the crisis that it was important to “be guided” by the supply of goods and “to get regular profits”.
On June 23, Vauld announced it would lay off 30% of its employees (the company has double the number). Bathja said he and his co-founder Sanju Sony Kurian “started Vauld in the last crypto winter and we are here because we handled the costs carefully at the time. We believe these steps are needed to make us stronger in the long run.”
However, market pressures and withdrawals seem to have shattered the company so that investors may not see much of their assets for too long. As of last July, Vauld had raised a total of $ 27 million, for young investors. Peter Thiel’s Valar Ventures, Coinbase, Pantera Capital, and Cadenza Capital.
For Crypto investors, who have seen crypto assets fail one of their basic promises of stability when other asset classes do not, this development will be another warning to heed the advice of skeptics who have warned about asset class investment pitfalls.
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