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Thu, Mar

Vauld Suspends Trading, Withdrawals And Deposits Amidst ‘Financial Challenges’

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Amid broader volatility in the crypto market due to several global macroeconomic factors and the recent collapse of multiple cryto-financial institutions, Singapore-based crypto-trading platform Vauld has suspended withdrawal and deposit options. The decision came as the platform was facing financial challenges and looking at a potential restructuring. In a statement released on the company website on Monday, Vauld founder and CEO, Darshan Bathija, said the startup is restructuring options and has engaged with Kroll for financial advice and Cyril Amarchand Mangaldas and Rajah & Tann for legal advice in India and Singapore.


He wrote, ”This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate. All this has led to a significant amount of customer withdrawals over $197.7 million since 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.

“We believe this will help facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors. We seek the understanding of the customers of the Vauld platform that we will not be in a position to process any new or further requests or instructions in this regard. Specific arrangements will be made for customer deposits necessary for certain customers to meet margin calls in connection with collateralised loans,” the CEO wrote.

Vauld enables customers to earn what it claims to be the “industry’s highest interest rates on major cryptocurrencies.” On its website, it says it offers 12.68% annual yields on staking several so-called stablecoins including USDC and BUSD and 6.7% on Bitcoin and Ethereum tokens. The platform allowed customers to borrow against their tokens and also facilitated several other trading services.

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