Indian crypto exchange, Vauld, has suspended trading, deposits and withdrawals on its platform citing financial challenges amid the market’s recent bear turn. In an blog statement posted on its website, the company’s management informed users that it is “facing financial challenges.”
This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7 million since 12 June 2022 when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.
Vauld CEO said in a blog statement on July 4, 2022.
Further, it said that it would be in the “best interest” of stakeholders to “take immediate action”.
The firm has engaged Kroll as its financial advisor, and law firm Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as their legal advisors, in India and Singapore, respectively. It said that the company will be exploring “all possible options” which include restructuring options.
“We are currently in discussions with potential investors into the Vauld group of companies. We 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 so as to give us breathing space to carry out the proposed restructuring exercise,” the statement added.
As it stands, the exchange’s customers will not be able to deposit or withdraw money from the platform, and the company won’t be processing any new requests or instructions from customers. It said that “specific arrangements” will be made for customers to meet margin calls in connection with collateralized loans.
Backed by Coinbase, Vauld is the first crypto exchange in India to officially be impacted by the market’s recent downturn. The company laid off 30% of its staff last month, similar to global crypto platforms, which have also been affected by the market’s bear turn.
The article originally published on Business Insider.