The toll of crypto lenders who are feeling the pinch continues unabated. Coinbase-backed Vauld is the latest crypto lender to freeze withdrawals, as the crypto winter endures, bringing the industry to the edge.
Fresh on the heels of the likes of big crypto lenders such as Celsius, BlockFi, Voyager Digital etc. Vauld is the latest company to admit that it has reached a point where it can no longer continue as before.
According to an article today on Bloomberg, Vauld has hired two companies to be its financial and legal advisors going forward. At the same time, it has suspended all withdrawals, trading, and deposits on its platform.
Only 3 weeks previously, Vauld had said that it was operating as usual and processing withdrawals without any problem, and that “this will continue to be the case in the future”. The speed with which the company has gone from this statement to the present one is perhaps a sign of just how badly the entire crypto industry has been affected by the current downturn.
Vauld has published a Corporate Statement on its blog, explaining the situation, and seeking to reassure stakeholders. The company attributes its problems to market volatility, the financial difficulties of its key business partners, and customer withdrawals in excess of $197.7 million.
The statement expresses Vauld’s intent to go down the restructuring route, and with this in mind, to apply to the Singapore courts (where the company is based) for a “moratorium” of any proceedings against the Vauld group of companies, so as to give Vauld a “breathing space” in which to carry out the restructuring.
On the Vauld Twitter account the company stated that “we’re committed to finding the best resolution for our customers.”
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