The current horrific crypto market condition has put a lot of crypto organizations at liquidation risk. In response to combating this problem; most organizations have taken the unlikely step of halting operations on their platforms.
One of which is Vauld – a Singapore-based crypto trading and lending platform that took the “difficult” decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect.
According to the thread on their official Twitter page; the team confessed that they were facing certain challenges despite their efforts to be the best crypto lending platform.
The challenges experienced included a combination of the current volatile market position, the financial difficulties of their key business partners and the current market climate.
The team also disclosed the financial transactions that have been ongoing on the platform. According to them, since June 12, 2022; there has been an excess withdrawal from customers amounting to $197.7 million. This was due to the decline in the crypto market; following the Terra Luna crash, UST de-pegging, Celsius Network pausing withdrawals and 3AC defaulting on loans.
“We have considered that it would be in the best interests of stakeholders to take immediate action in the circumstances. In furtherance of this, we have engaged the services of our financial and legal advisors in India and Singapore respectively” – Vauld.
The team has employed the help of their advisors to strategize a suitable solution that will protect the interest of their stakeholders and customers, as well as rescue their company from the financial turbulence.
The team also stated that they intend to apply to the Singapore courts for a moratorium i.e a suspension of the commencement or continuation of any proceedings against the relevant companies to give them breathing space to carry out the proposed restructuring exercise.
Concluding this disheartening announcement; the company pleaded with all customers and stakeholders. Seeking their understanding and patience and also adding that specific arrangements will be made for customer deposits as may be necessary for certain customers to meet margin calls.
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