Cryptocurrency exchange Vauld has today suspended all withdrawals, trading and deposits with immediate effect. “We believe this will help us, together with our financial and legal advisors, explore the appropriateness of potential restructuring options,” the crypto exchange said in a statement.
Vauld said it is “facing financial challenges” amid the crypto market collapse despite its “best efforts”.
Crypto markets have collapsed this year as investors worried about rising interest rates. Bitcoin, the largest cryptocurrency, has fallen about 70 percent since its all-time high of $69,000 in November, dragging the overall market down.
“This is due to a combination of circumstances, such as volatile market conditions, the financial difficulties of our key business partners that inevitably affect us, and the current market environment that has resulted in a significant number of customer withdrawals in excess of $197.7 million. since June 12, 2022, when the cryptocurrency market decline was caused by the collapse of Terraform Lab’s UST stablecoin, the Celsius network that paused withdrawals and Three Arrows Capital that defaulted on their loans,” the exchange added. to.
“We believe this will help us, together with our financial and legal advisors, explore the appropriateness of potential restructuring options,” the company also said after the cessation of investor transactions.
In addition, Vauld has engaged the services of Kroll Pte Limited as financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisors in India and Singapore respectively.
“We intend to apply to the Singapore courts for a moratorium, i.e. a suspension of the commencement or continuation of proceedings against the affected companies to give us breathing space to implement the proposed restructuring,” it said. the statement of the company.
Vauld is supported by Valar, Pantera Coinbase, CMT Digital and others.