Singapore-based crypto lending and exchange platform Vauld has halted its operations, citing volatile market conditions and financial difficulties. Also, the company has announced immediately suspending all deposits, withdrawals, and trading.
Vauld is backed by leading venture capitalists like Coinbase Ventures, Pantera Capital, and Peter Thiel’s Valar Ventures. The company has said it will only process customer deposits related to its collateralized loan product.
“Specific arrangements will be made for customer deposits as may be necessary for certain customers to meet margin calls in connection with collateralized loans,” reads Vauld’s announcement.
Furthermore, Vauld has hired financial advisory firm Kroll Pte Limited and legal firms including Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP. The company aims to explore all possible options to help solve its current crisis.
Meanwhile, Vauld revealed facing withdrawals totaling $197.7 million since 12 June 2022. The company cited Terra’s collapse, Celsius’s financial woes, and 3AC’s insolvency as reasons for the mass withdrawals.
Moreover, Vauld was forced to lay off 30% of its staff last month due to plummeting revenues. Furthermore, the company has slashed its executive compensation in half.
Vauld’s latest announcement has sparked more fear among its users. “Suspend deposits, square off FDs with the principal amount and let users withdraw their crypto/money,” a user tweeted. “You can’t hold investors’ money against their will.”
Vauld is the latest to join the list of crypto lending firms hit hard during the latest market downturn. It all started with crypto lender Celsius pausing withdrawals, citing liquidity issues.
Recently, Binance CEO Changpeng Zhao was seen lashing out at these companies, including Vauld. He alleged that they rely too much on VC funds without having a transparent business model.