Crypto-trading platform Vauld suspends operations

economictimes.indiatimes.com:

Vauld has suspended all deposits and withdrawals. The decision comes amid a broader volatility in the cryptocurrency market and as the platform faces financial challenges. Vauld is looking at a potential restructuring. “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,” said chief executive officer (CEO) Darshan Bathija in a statement on the company’s website on Monday. “All this has led to a significant amount of customer withdrawals over $197.7 million since June 12, 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.”

Did you Know?

In the wake of the crypto market crash, the prices of hardware used to support the mining of crypto assets are also falling dramatically. For example, a high-end graphic card is now almost 45% cheaper compared to its price a few months ago.

The company, backed by PayPal founder Peter Thiel's Valar Ventures, has suspended all withdrawals, trading, and deposits with immediate effect, essentially locking in retail investor capital. It has engaged the services of Kroll as its financial advisor, and legal firms Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP in India and Singapore, respectively. “We believe this will help facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors. We seek the understanding of the customers of the Vauld platform that we will not be in a position to process any new or