Billions of dollars in value have been wiped from the cryptocurrency market in the past few weeks. Companies in the industry are feeling the pain. Lending and trading firms are facing a liquidity crunch and many firms have announced layoffs.
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Crypto lender Vauld paused all withdrawals, trading and deposits on its platform on Monday and is exploring potential restructuring options, the company said.
Vauld CEO Darshan Bhatia said in a blog post on Monday that the company was facing “financial challenges” due to “volatile market conditions, the financial difficulties of our key business partners which inevitably affect us and the current market climate” which has led to customers has withdrawn more than $197.7 million from the platform since June 12.
The Singapore-based company said it was working with its financial and legal advisors to “explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.”
Crypto lending firms like Vauld are facing liquidity issues. Celsius last month paused customer withdrawals, citing “extreme market conditions.”
Vauld said it was “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.
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