Saturday, July 13, 2024

Vauld suspends services to mitigate financial challenges.

A Singapore-based Vauld is the latest crypto company to suspend withdrawals, trading, and deposits to mitigate financial challenges. Vauld confirmed that it’s facing financial challenges amid the market downturn. It led to customer withdrawals of about $198 million since June 12.

Darshan Bathija, the founder and chief executive of Vauld, said the company is exploring restructuring options. It has engaged with Kroll for financial advice and Cyril Amarchand Mangaldas and Rajah & Tann for legal advice in India and Singapore. Vauld intends to apply for a moratorium through the Singapore courts.

Bathija said Vauld is confident that with the advice of its financial and legal advisors, the company will be able to reach a solution that will protect the interests of its customers and stakeholders. He highlighted that they will make specific arrangements for certain customers who need to meet their margin calls. The platform seeks the understanding of customers. Bathija highlighted that Vauld will not be in a position to process any new or further requests or instructions. He pointed out that arrangements will be made for deposits for certain customers to meet margin calls in regards to collateralized loans.

Vauld’s announcement comes as a surprise as on June 16, the founder had assured customers that the platform had no exposure to Celsius and Three Arrows Capital (3AC) – companies that are facing financial problems and bankruptcy. Bathija had said Vauld remains liquid despite market conditions.

Vauld gives its customers the industry’s highest interest rates on major cryptocurrencies. It offers 12.68% annual yields, as per its website, on staking several stablecoins such as USDC and BUSD. The crypto startup gives 6.7% on Bitcoin and Ethereum tokens. Moreover, Vault allows customers to borrow against their tokens.

With crypto companies succumbing to financial losses, Changpeng Zhao’s – founder of Binance – caution comes to light. He had warned that many more DeFi platforms are on the verge of collapse. CZ highlighted that in recent weeks, Binance has engaged with over 50 firms to evaluate funding. The crypto exchange is also looking into bailing out opportunities for some businesses.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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