Crypto Platform Vauld Suspends Withdrawals, Trading And Deposits With Immediate Effect

Coinbase-backed crypto exchange Vauld has announced that it is suspending all withdrawals, trading, and deposits with immediate effect. 

Vauld has said that it is ceasing all withdrawals, trading, and deposits on its platform. Citing the reason for this to be “financial challenges”, the Singapore-based firm said volatile market conditions has also contributed to this decision. 

Trouble at Vauld seemed to be brewing for quite a bit, as the crypto exchange had previously announced that it was cutting down its workforce by 30 per cent in June. In the announcement, Vauld had also said that it was reducing its marketing expenses, slowing hiring efforts and reducing executive compensation by 50 per cent. The company had cited the economic slowdown to be the reason for this.

“We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors. We seek the understanding of customers of the Vauld platform that we will not be in a position to process any new or further requests or instructions in this regard”, wrote Vauld on its blog, commenting on the suspension of trading. 

The company is said to be making arrangements for customer deposits to meet margin calls in connection with collateralised loans.

Vauld has also revealed that it is currently looking for potential investors.

The company also intends to apply to the Singapore courts for a moratorium that would allow for a suspension of the commencement or continuation of any proceedings against the relevant companies. This would give Vauld the much needed “breathing space to carry out the proposed restructuring exercise”, the company said.