Singapore-based cryptocurrency lending and trading platform Vauld, which targets the Indian market, has announced a suspension of withdrawals due to market volatility.
Like some other crypto firms, Vauld appears to be having liquidity issues as the market plunges. Now the company’s management is looking for the possibility of restructuring.
“We have made the difficult decision to stop all withdrawals, trading and deposits on the Vauld platform. The decision is effective immediately,” wrote Platform CEO Darshan Bathija.
He noted that the fall of the market and the financial problems of the company’s partners led the company to such a decision. In addition, since June 12, users of the platform have withdrawn $198 million of funds – they are frightened by the collapse of Terra, the bankruptcy of Three Arrows Capital and the events with Celsius.
To facilitate the restructuring, Vauld’s management has hired Kroll as financial advisor, while Cyril Amarchand Mangaldas and Rajah and Tann Singapore will act as Vauld’s legal representatives in India and Singapore, respectively.
“Our management is working with advisors to evaluate and analyze all possible options for resolving this situation, including the possibility of restructuring. We are going to apply to the Singaporean courts for a moratorium on lawsuits against us to give us a breather and an opportunity to restructure,” said Batija.
Recall that earlier the court of the British Virgin Islands ruled on the liquidation of the cryptocurrency hedge fund Three Arrows Capital.
Source: Bits
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