Billions of dollars of value have been wiped off the cryptocurrency market in the last few weeks. Companies in the industry are feeling the pain. Lending and trading firms are facing a liquidity crisis and many firms have announced layoffs.
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Crypto lender Vauld on Monday paused all withdrawals, trading and deposits on its platform and is exploring potential restructuring options, the company said.
Vauld CEO Darshan Bathija said in a blog post on Monday that the company is facing “financial challenges” due to “volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate” which has led to customers withdrawing more than $ 197.7 million from the platform since June 12.
The Singapore-based company said it was working with its financial and legal advisers to “explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.”
Crypto lending firms such as Vauld have faced liquidity issues. Celsius last month paused withdrawals for customers citing “extreme market conditions.”
Vauld said it is “in discussions with potential investors” in the company.
The company said it has hired Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore respectively.