Singapore-based Crypto exchange Vauld said it has suspended all tradings, withdrawals, and deposits on its platform due to the “volatile market conditions” and the “financial difficulties” that its business partners are facing, which is now impacting it too.
The company said that due to the current market conditions, the exchange has seen a significant increase in customer withdrawals. Since June 12, 2022, withdrawals on the exchange have exceeded $197.7 million.
“We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors,” the company said in a statement.
Vauld has hired Kroll Pte Limited as its financial advisor, along with Cyril Amarchand Mangaldas in India and Rajah & Tann Singapore LLP in Singapore as legal advisors.
Further, Vauld reassured its users that specific arrangements will be made for customer deposits to meet margin calls in connection with collateralized loans. It has also started discussions with potential investors in 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,” Vauld said.
Vauld had raised $25 million in a Series A round in July 2021.
In an interview with Hindu Business Line, published in May, Darshan Bathija, chief executive of Vauld said the exchange has a million customers and a significant number of them were based in India. He added that business revenues for Vauld grew 10X in the last 12 months.
The Crypto market saw its biggest crash ever in the months of May and June after the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.
The value of Bitcoin fell under $30,000 for the first time in 10 months. The crypto industry is estimated to have lost close to $800 billion in market value in a month, according to CoinMarketCap.
The downturn has impacted most crypto companies and forced them to put hiring and other expansion plans on hold. Many were even forced to cut jobs. For instance, last month Coinbase announced that it was laying off 18% of its workforce.