Crypto platform Vauld suspends withdrawals, trading and deposits amid financial challenges – TechCrunch

Vauld, a start-up of cryptocurrency lending and exchanges headquartered in Singapore, has suspended withdrawals, trading and deposits on its eponymous platform with immediate effect while navigating “economic challenges”, it was said on Monday.

The startup – which counts Peter Thiel-backed Valar Ventures, Coinbase Ventures and Pantera Capital among its supporters and has raised around $ 27 million – said it faces financial challenges in the midst of the market downturn and has seen customer withdrawals of around $ 198 million since 12. June.

Vauld’s founder and CEO Darshan Bathija said the startup is exploring restructuring options and has engaged with Kroll for financial advice and Cyril Amarchand Mangaldas and Rajah & Tann for legal advice in India and Singapore.

“We are confident that, with the advice of our financial and legal advisers, we will be able to reach a solution that will best protect the interests of Vauld’s clients and stakeholders,” he wrote in a blog post, adding that the startup will make “specific arrangements” for customer deposits to meet their margin requirements.

Vauld enables customers to earn what they claim to be “the industry’s highest interest rates on major cryptocurrencies.” On its website, it says that it offers a 12.68% annual return on betting several so-called stack coins, including USDC and BUSD and 6.7% on Bitcoin and Ethereum tokens.

An illustration of how Vauld works. (Image: Vauld)

“We seek understanding from customers of the Vauld platform that we will not be able to process new or additional requests or instructions in this regard. Specific arrangements will be made for customer deposits that may be necessary for some customers to meet margin requirements in in connection with secured loans “, Bathija wrote today.

The announcement follows after Vauld cut the workforce by 30% two weeks ago.

The move comes as a surprise. On June 16, Bathija had assured Vauld customers that the platform had no exposure to Celsius, another lending startup facing growing financial challenges, and Three Arrows Capital, one of the high-profile crypto hedge funds that filed for a Chapter 15 bankruptcy over the weekend.

“We remain liquid despite market conditions. During the last few days, all withdrawals were treated as usual, and this will continue to be the case in the future “, Bathija wrote earlier.