Singapore-based Bitcoin and altcoin exchange Vauld announced that it is suspending transactions. Vauld said he was exploring all options with his financial and legal advisers. The company has announced that it will not accept new requests at this time. But will offer specific samples for secured loans. The company also laid off 30 percent of its staff last month. Here are the details…
Bitcoin exchange halts transactions
Bitcoin and altcoin exchange Vauld reported that it has suspended all withdrawals, trading and deposits on its platform. The Singapore-based company said it was exploring restructuring options with its financial and legal advisors. “We have made the difficult decision to stop all withdrawals, trading and deposits on the Vauld platform,” the firm said. The exchange team reported that the crypto market is facing financial difficulties due to various ongoing reasons. He said that the financial difficulties of business partners affected them. The firm used the following statements:
As the Vauld management, we would like to inform you that despite our best efforts, we are facing financial difficulties. This is due to the sum of factors such as volatile market conditions. The financial difficulties of our key business partners inevitably affect us. Also the current market environment which has resulted in significant customer attraction.
Customers withdrew $200M in the last 2 months
Vauld reported that the amount withdrawn by customers in the last two months was $197.7 million. Withdrawals began around May 12, when the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST. As Cryptokoin.com reported, this was also triggered by the Celsius network stopping withdrawals in recent weeks. Also, the crisis surrounding Three Arrows Capital’s default on its loans exacerbated the situation.
Vault management said it is working with its financial and legal advisors to explore and analyze all possible options. Options include a potential restructuring move that best serves the interests of Vauld’s stakeholders. Last week, crypto trading volumes in India fell after the government imposed a long-feared 1% tax on transactions. Trading volumes on the country’s largest exchanges have dwindled by more than half in a few days. This sudden decrease was observed after the tax rule came into effect from 1 July.
Backed by Coinbase
Currently, customers of the exchange will not be able to deposit or withdraw funds from the platform, and the company will not process any new requests or instructions from customers. It was stated that “special arrangements” will be made for customers to meet margin calls in connection with secured loans. Backed by Coinbase, Vauld is the first crypto exchange in India to be officially affected by the recent market downturn. The company laid off 30 percent of its staff last month, similar to global crypto platforms impacted by the market’s bearish trend.
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