Vauld suspends withdrawals due to increasing crypto-uncertainty

• Vauld, a crypto-lending and exchange platform, has stopped all its activities, including trading, deposits and withdrawals.
• The company has hired consultants to help with the challenges of a potential restructuring.
• Binances Changpeng Zhao condemns Vauld’s actions and asks 6.5 million followers on crypto-Twitter to stay away from platforms that require VC funding.
• Vauld is supported by crypto heavyweights Peter Thiels Valar Ventures, Coinbase Ventures and Pantera Capital.

Vaulda crypto-lending and exchange platform, suspended its trading, deposits and withdrawals with immediate effect, in a manner reminiscent of Celsius. The Crypto platform headquartered in Singapore navigates “financial challenges” with the support of its investors and advisors.

Also read: Is Celsius Network collapsing as Terras LUNA?

Vauld withdrawals stopped abruptly, before restructuring

Vauld has taken precautions in the crypto bear market, stopped trading, deposits and withdrawals and invited advisers to start restructuring. The launch of the Singapore-headquartered cryptocurrency lending and stock exchange announced that it is navigating “financial challenges” in the current market downturn after customers withdrew $ 198 million in the capital since June 12, 2022.

The three-year-old company is supported by crypto-heavyweights Peter Thiels Valar Ventures, Coinbase Ventures and Pantera Capital, among others. Vauld recently raised $ 27.5 million in financing and is now exploring restructuring options.

Darshan BathijaVauld’s founder and CEO revealed that Vauld was engaged Krollan American investigation and risk consulting firm, to navigate the challenges it faces with increasing withdrawals and the crypto bear market. Cyril Amarchand Mangaldas and Rajah & Tann are Vault’s legal advisers for India and Singapore.

Bathija wrote in a blog post,

We seek understanding for 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 connection with mortgage loans.

The company has confirmed no investment in Celsius and Three Arrows Capital and confirmed that Vauld remains liquid despite unfavorable market conditions. Furthermore, Vauld had honored the withdrawals before the announcement on July 4, 2022 and assured the community that it would continue to do so in the future.

Vauld has been hit by a crisis due to a combination of the volatile crypto market, financial difficulties for business partners and rapid withdrawals from customers. The implosion of TerraUSD and the collapse of Celsius and The capital of three arrows added to Vauld’s misery as it led to an acceleration in the pace of withdrawals from the exchange and lending platform.

It is currently unclear how many users Vauld serves and what arrangements the company will make for customers who need to meet their margin calls.

Crypto-influencers condemn Vault’s strategy

Changpeng Zhao, CEO of Binance, has expressed concerns about Vauld users. The Binance chief warned his 6.5 million followers to be careful when using platforms that require VC funding.

Zhao revealed that there are some exceptions to the rule above; But more often than not, VC-backed companies do not yet have a real business model.

@NFTherdera pseudonymous analyst at the chain, warned crypto-Twitter about moving their cryptocurrencies to wallets they own and pulling them out of centralized exchanges and platforms.