The cryptocurrency lending platform, Vauld, opens up about its ongoing financial issues caused as a result of the recent crypto market scandal and a couple of internal happenings. The firm has suspended withdrawals as a result of this.
Withdrawals suspended with immediate effect, Vauld Management
Crypto asset lender, Vauld, became the latest firm in the industry to admit defeat due to the current crypto market situation. The firm’s management released a corporate statement to explain the current issues that they are facing and what steps they are taking in the direction of protecting their stakeholders.
Vauld admitted that, after all their efforts to manage losses, they are facing financial issues that they cannot keep confidential again. They admitted that the situation is due to a combination of circumstances, which include the volatile market conditions, the “financial difficulties of their key business partners”, and the current market climate, that led to an average daily customer withdrawal of over $197.7 million since the 12th of last month.
Similar to Celsuis’s reason for halting customer withdrawals and other firms’ defaulting on their loan payments, the firm stated that the collapse of Terraform Lab’s UST stablecoin, which triggered the crypto market significantly, has also affected their financial operations.
The firm has employed legal and financial advisory services to advise on possible restructuring options in their stakeholders’ best interest. They stated that they have contacted Kroll Pte Limited in India as a financial advisor and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisors in Singapore.
“In the meantime, we have made the difficult decision to suspend all withdrawals, trading, and deposits on the Vauld platform with immediate effect.” The statement said, “We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors.” Vauld management mentioned this in their corporate statement.
The statement also mentioned that the company intends to apply to the Singapore courts for a moratorium—”a suspension of the commencement or continuation of any proceedings against the relevant companies so as to give us breathing space to carry out the proposed restructuring exercise.”
Vauld management concluded that they are in a position of being unable to process requests in regard to withdrawals and so are pleading with their customers to understand the current situation and grant them time as they work on bringing a solution forth.
