Crypto Platform Vauld Suspends Withdrawals Amid Digital Asset Downturn By Investing.com

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Crypto Platform Vauld Suspends Withdrawals Amid Digital Asset Downturn

Published Jul 04, 2022 20:32

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Crypto Platform Vauld Suspends Withdrawals Amid Digital Asset Downturn

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By Scott Kanowsky

Investing.com -- Singapore-based cryptocurrency exchange and lending platform Vauld has suspended all withdrawals, trading and deposits, as the fallout from a recent collapse in digital assets expands.

In a blog post on Monday, Vauld said the decision is based on a number of factors, including "volatile" market conditions, which subsequently led customers to pull out more than $197.7M from the platform since June 12.

The company added that it may move to revamp the company while withdrawals are stopped.

"Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders," Vauld founder and CEO Darshan Bathija said.

The firm added that it will make "specific arrangements" to allow some customers to continue making deposits in order to meet margin calls or demands to boost capital.

Vauld's announcement comes as the values of Bitcoin and Ethereum have recently plummeted by more than 70 percent from their record highs, spurred on by a flight from risky investments amid concerns over a broader economic slowdown.

The downturn in the value of digital tokens has forced several of Vauld's peers - including Celsius Network, BlockFi, Hoo Exchange, and AEX - to halt or limit withdrawals, although most have begun to relax those restrictions.

In June, Bathija claimed that withdrawals will be processed as usual, and reassured investors that the company had no exposure to Celsius or now-collapsed crypto hedge fund Three Arrows Capital. But a few days later, Vauld slashed its workforce by 30% and slowed hiring, citing market uncertainty.

As of 0547 EST (0947 GMT), Bitcoin was trading higher by 1.82% at $19,383.1, while Ethereum rose 0.60% to $1,065.50.

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