Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Crypto Platform Vauld Suspends Withdrawals Amid Digital Asset Downturn

Published 07/04/2022, 06:32 PM
Updated 07/04/2022, 06:32 PM
© Reuters

© Reuters

By Scott Kanowsky 

Investing.com -- Singapore-based cryptocurrency exchange and lending platform Vauld has suspended all withdrawals, trading and deposits, as the fallout from a recent collapse in digital assets expands.

In a blog post on Monday, Vauld said the decision is based on a number of factors, including "volatile" market conditions, which subsequently led customers to pull out more than $197.7M from the platform since June 12.

The company added that it may move to revamp the company while withdrawals are stopped.

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

The firm added that it will make "specific arrangements" to allow some customers to continue making deposits in order to meet margin calls or demands to boost capital.

Vauld's announcement comes as the values of Bitcoin and Ethereum have recently plummeted by more than 70 percent from their record highs, spurred on by a flight from risky investments amid concerns over a broader economic slowdown.

The downturn in the value of digital tokens has forced several of Vauld's peers - including Celsius Network, BlockFi, Hoo Exchange, and AEX - to halt or limit withdrawals, although most have begun to relax those restrictions.

In June, Bathija claimed that withdrawals will be processed as usual, and reassured investors that the company had no exposure to Celsius or now-collapsed crypto hedge fund Three Arrows Capital. But a few days later, Vauld slashed its workforce by 30% and slowed hiring, citing market uncertainty.

As of 0547 EST (0947 GMT), Bitcoin was trading higher by 1.82% at $19,383.1, while Ethereum rose 0.60% to $1,065.50.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.