Singapore-based crypto platform Vauld has suspended all withdrawals, trading and deposits on its platform with immediate effect. The decision comes amid a major downturn in the crypto industry globally.
Vauld, backed by Valar Ventures, which is run by PayPal founder Peter Thiel, says it faces financial challenges despite its best efforts.
Darshan Bhatia, Vauld’s chief executive, attributed it to a combination of circumstances such as “volatile market conditions”, the “financial difficulties” of its key business partners inevitably affecting it and the current “market climate”.
This resulted in a significant amount of customer withdrawals of over $197.7 million since June 12, 2022, when the cryptocurrency market downturn was triggered by the collapse of Terraform Lab’s UST stablecoin, the Celsius network paused withdrawals, and Three Arrows Capital defaulted loans, he adds.
Vauld said it would be “in the best interests of the parties concerned to take immediate action in these circumstances”. The company has now engaged the services of Kroll Pte Ltd. as financial advisor and to Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore respectively.
The company says its management is working with its financial and legal advisors to analyze all possible options, including potential restructuring options that would protect the interests of Vauld’s stakeholders.
Singapore-based Vauld has cut its workforce by around 30% amid the financial crisis. “We have decided to reduce the number of employees by about 30%. This is not a decision we take lightly, but given the slowdown in the economy, we have concluded that this is the right course of action,” Bathija said in a message to his staff. The downsizing affected every team in the organization, especially the marketing and talent acquisition teams.