“Invested entire family life savings”: Users panic as Vauld suspends cryptocurrency withdrawals
“I have 25 Bitcoin in Vauld. I have invested the whole family’s savings,” John Mayer, 37, a US-based Vauld user, told indianexpress.com during a conversation on a social media site. Mayer is among the many investors now desperately looking for relief after Vauld, a popular crypto-lending platform, suspended its withdrawals and deposits.
The company blamed the volatile market conditions for this decision. With this, Vauld joins the growing list of Decentralized Finance (DeFi) companies such as Celsius network and Voyager Digital, which has suspended trading, making it difficult for hundreds of thousands of investors to liquidate their cryptocurrencies.
According to Mayer, he had BTC as a fixed deposit. He tried to pull it back several times, but the app did not allow him. “After contacting support, I was told that it was a bug and that it would be fixed soon. I asked them to cancel it manually, and they said they could not. I had 3 days left. Three days left to save everything. I feel like the policeman in the movie who retires tomorrow and will be shot on his last day, he added. His feelings are shared by other investors who suddenly do not have access to their money.
“How are we going to buy or sell our crypto during this time if most exchanges stop withdrawing and depositing? Should we just put in some money, buy some crypto and immediately transfer it to cold storage before another exchange” stops operating “and freezes Our crypto? This is starting to get ridiculous, Mike, another Vauld user, told indianexpress.com.
Vauld allowed users to earn a fixed interest rate on their cryptocurrencies as soon as they deposit their money. Interest was calculated daily, and users could make the payment weekly. Previously, they could withdraw their money immediately. But the suspension of withdrawal services has created panic among users who have invested their savings, who want to earn quick profits.
A Vauld user on condition of anonymity said: “I have $ 15,000 in Celsius and $ 181,000 in Vauld. I thought we would get a percentage of our coins back. But we will not know in several months what will happen. One thing is assured, there will be a lot of emotional pain and speculation. “
According to the company, the decision to suspend withdrawals comes after users withdrew $ 197.7 million over the past three weeks, which saw cryptocurrency prices plummet since June 12, 2022.
Vauld said they have hired financial and legal advisers to analyze options, including a potential restructuring. It is worth noting that in July 2021, the company raised $ 25 million led by Peter Thiel-founded Valar Ventures along with Pantera Capital and Coinbase.
Someone like Mayer is asking Coinbase to come to the rescue, since the stock exchange is one of the investors in Vauld. “At this point, all our hope is that someone will buy them out so we can get our money back. But it’s a long shot. Coinbase will do something,” he asked.
Meanwhile, Vauld announced that there can be a solution like Nexo, The lender in the digital finance area is looking to buy the company. “I understand that many of our customers are nervous about your money. We work tirelessly to ensure that your finances are protected. To that end, we have signed an indicative term sheet with Nexo to buy up to 100% of Vauld, Darshan Bathija said in a statement on Tuesday.
