Home / Markets / Cryptocurrency /  Crypto exchange Vauld suspends all transactions due to financial trouble
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NEW DELHI: Vauld, a Singapore-based crypto exchange, said it has suspended all tradings, withdrawals, and deposits on its platform due to “volatile market conditions" and “financial difficulties" that its business partners are facing, which is now impacting it too.

The company said due to current market conditions, the exchange has seen a significant increase in customer withdrawals. Since 12 June 2022, withdrawals on the exchange have exceeded $197.7 million.

“We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors," the company said in a web post.

Vauld said it has hired Kroll Pte Limited as its financial advisor, along with Cyril Amarchand Mangaldas in India and Rajah & Tann Singapore LLP in Singapore as legal advisors.

The exchange assured its users that arrangements will be made for deposits as may be necessary for some customers to meet margin calls in connection with collateralised loans.

The company has started discussions with potential investors in the Vauld group of companies.

“We intend to apply to the Singapore courts for a moratorium i.e. a suspension of the commencement or continuation of any proceedings against the relevant companies so as to give us breathing space to carry out the proposed restructuring exercise," Vauld said.

Vauld had raised $25 million in a Series A round in July 2021.

In an interview with Hindu Business Line, published in May, Darshan Bathija, chief executive of Vauld, had said that the exchange has a million customers and a significant number of them were based in India. He had also said business revenues for Vauld grew 10 times in the last 12 months.

The crypto market saw its biggest crash ever in the months of May and June after the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on loans.

The value of Bitcoin fell under $30,000 for the first time in 10 months. The crypto industry is estimated to have lost close to $800 billion in market value in a month, according to CoinMarketCap.

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