Crypto Firm Vauld Suspends Deposits, Withdrawals And Trading
Crypto firm Vauld has suspended all deposits, withdrawals and trading on its platforms, as it faces serious financial challenges, the company said in a statement.
The financial challenges are due to a combination of circumstances such as the volatile market conditions, financial difficulties faced by key business partners and the current market climate, Vauld Co-Founder and Chief Executive Darshan Bathija said in a corporate statement on the company's website on Monday.
Since June 12, Vauld has seen customer withdrawals in excess of $197.7 million (approximately Rs 1,544 crore).
"We believe that this [halt in deposits, withdrawal and trading] will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors," Bathija said.
Vauld has hired Kroll Pte Ltd. as a financial adviser. It has also appointed Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisers in India and Singapore, respectively.
"Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyse all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders," Bathija said.
While customer withdrawals are suspended, Vauld will facilitate any specific arrangements for customer deposits, as may be necessary for certain customers to meet margin calls in connection with collateralised loans, the statement said.
Last month, the company had also laid off 30% of its staff, owing to detrimental market conditions.
Vauld is also in discussions with potential investors to seek infusion of funds into Vauld group of companies. The company also intends to apply to the Singapore courts for a moratorium against any legal challenges.
BQ Prime had previously reported that a crypto shake-up was hitting the Indian shores, after a slew of business failures globally. India's first crypto unicorn CoinDCX, too, had suspended customer withdrawals and deposits last month.
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