Singapore-based asset-backed lending and borrowing platform Vauld, which is supported by 30+ cryptocurrencies stated that it has suspended all its withdrawals as well as trading and will soon be seeking new investors. This comes months after disruption in the crypto industry.
Commenting on this, Vauld CEO Darshan Bathija mentioned in a blog post that they are currently facing several financial challenges due to the unpredictable market conditions which in turn are posing financial difficulties for the business partners.
The current market climate has led to a significant amount of withdrawals by the customers with an excess of USD 197.7 million since June 12.
The bankruptcy of so-called stablecoin TerraUSD, the suspension of withdrawals by major US lender Celsius Network, and the liquidation of Singapore-based crypto hedge fund Three Arrows Capital are just a few of the recent collapses that have rocked the cryptocurrency sector.
Crypto exchange FTX has struck a deal with an option to purchase troubled crypto lender BlockFi for up to USD 240 million, the company announced last week. Crypto lenders have also been severely hit by this.
Even the most valuable cryptocurrency in the world, Bitcoin, has dropped to half of its value since early May and at the time of writing this copy, it was trading at USD 16,16,900.
Vauld announced that the company had hired legal and financial advisors, was in talks with potential investors, and would also apply to the Singapore courts for a moratorium, which would stop any legal action being taken against it while it undertook a re-organization.
Image Credits: Darshan Bathija @Twitter