On July 4, the crypto lending company Vauld announced it suspended withdrawals, trading, and deposits after disclosing the firm is “facing challenges.” While not naming any specific companies, the Singapore-based cryptocurrency lending platform and exchange mentioned “financial difficulties” stemming from “key business partners.”
This has resulted in significant customer withdrawals in excess of $197.7 million since June 12, 2022, when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius Network pausing withdrawals, and 3AC defaulting on loans.
Vauld continued by highlighting that the startup is currently working with financial and legal advisors in India and Singapore. The firm also mentioned the company is talking about restructuring options with the advisors and methods that would “best protect the interests of Vauld’s stakeholders.” Vauld intends to apply with the Singapore courts to protect the firm from any proceedings and ask for time so Vauld can have “breathing space to carry out the proposed restructuring exercise.” Vauld’s Twitter announcement continued:
In the meantime, we have made the difficult decision to suspend all withdrawals, trading, and deposits on the Vauld platform [effective immediately].
Centralized exchanges and cefi services are not crypto, or even blockchain companies. They are essentially banks with less regulation, oversight, and most importantly, responsibility to the consumers they serve — To take back control, it’s vital that we move to self-custodial products and services that put us in full control of our digital assets and financial futures.
What do you think about Vauld’s announcement on Monday? Let us know what you think about this subject in the comments section below.