Vauld halts client withdrawals and engages restructuring consultants

Vauld, a Singapore-based crypto trading and lending platform with the majority of its employees based in India, has become the latest cryptocurrency company to suspend customer withdrawals in the midst of market turmoil.

In a blog post on Monday, CEO Darshan Bathija stated that the company has “taken the tough choice to cease all withdrawals, trading, and deposits on the Vauld platform with immediate effect.”

According to Bathija, Vauld is struggling financially due to a mix of issues, including a turbulent market and the financial troubles of business partners. According to Bathija, the platform has witnessed approximately $198 million in customer withdrawals since June 12, prompted by the implosion of the TerraUSD stablecoin, Celsius’ decision to cease withdrawals, and Three Arrows Capital’s troubles.

Vauld is open to alternative reorganization ideas. To that aim, Kroll has been retained as the firm’s financial advisor, and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP have been hired as its legal advisors in India and Singapore, respectively.

“Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyse all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders,” said Bathija.