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Singapore-based cryptocurrency lender, the Vauld Group has joined the number of companies that are buckling under the weight of the ongoing crypto market price crash.
The company shared a corporate statement today that it has suspended withdrawals on its platform with immediate effect, citing its current financial challenges.
The firm said it has continued to see excessive withdrawals from its platform, a move that comes off as though the trust has been lost due to the mishap that befell other competitors including Celsius Network back in June.
“The Vauld management wishes to inform that we are facing financial challenges despite our best efforts,” the company announced in the Corporate statement. “This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7 m since 12 June 2022 when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.”
Alongside the revelation, the company said it is stepping ahead of the situation and that it has “engaged the services of Kroll Pte Limited as our financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as our legal advisors in India and Singapore respectively.”
The firm said it is considering all possible options that are opened to it at this time, including restructuring if it comes to that. In all, the firm said it plans to only make the decisions that will protect its stakeholders, and it promises to work without interference with the newly appointed legal and financial advisors.
Vauld Group Withdrawals Halt: Hope for Customers
It is yet unclear what will happen to users who have assets locked up on the Vauld Group platform, and though they are unable to access their funds at the moment, the company said it will find avenues to ensure they meet their Margin Call requirements.
“we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect. We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors. We seek the understanding of customers of the Vauld platform that we will not be in a position to process any new or further requests or instructions in this regard. Specific arrangements will be made for customer deposits as may be necessary for certain customers to meet margin calls in connection with collateralised loans,” the company said.
Besides Vauld, Celsius Network and Babel Finance are two of the most important lenders in the cryptospace that have halted withdrawals, and like Vauld, both have hired professionals to help in advising on the next steps.