Crypto lender Vauld on Monday decided to temporarily stop all withdrawals, trades and deposits on their platform. At the same time, the company informed that it is looking at restructuring options.
Vauld CEO Darshan Bathija said in a post on their website on Monday that the company is facing “financial challenges” due to volatile market conditions, the financial constraints of our key business partners that inevitably affect us, and current market conditions ”” which has finally prompted users to spend more than $ 197.7 million on the platform since June 12th.
The Singapore-based company said it was working with its financial and legal advisers to "find and analyze all potential options, including restructuring options that could protect the interests of Vauld's shareholders."
Vauld's move to halt production came less than three weeks after CEO Bathija said the company "continued to operate as normal despite volatile market conditions." In a June 16 website post, Bathija said production was being "processed as usual and this will continue to happen in the future." Unfortunately, this cannot be continued.
With this Vauld has been the latest victim of the effects of the fall in cryptocurrency prices this year. Bitcoin had its worst quarterly performance since 2011 in the second quarter. Billions of dollars have disappeared from the market value of cryptocurrencies in three months.
Meanwhile, Hedge fund Three Arrows Capital faced a default situation when it failed to repay a loan of more than $ 660 million from Voyager Digital. Previously, Celcius also took a similar step by temporarily halting production due to poor market conditions.
