Singapore-based crypto lender Vauld suspends withdrawals

Vauld suspends withdrawals:

Vauld CEO Darshan Bathija said in a blog post that it was facing “financial challenges” due to: “volatile market conditions, the financial difficulties of our key trading partners that inevitably affect us, and the current market climate.

Singapore-based cryptocurrency lending and trading platform Vauld said on Monday it would suspend withdrawals and trading and seek new investors, the latest sign of stress in the beleaguered cryptocurrency industry.

Vauld CEO Darshan Bathija said in a blog post that it was facing “financial challenges” due to: “volatile market conditions, the financial difficulties of our key trading partners that inevitably affect us, and the current market climate that has led to a significant number of customer withdrawals in excess of $197.7 million since June 12.”

The crypto industry has been rocked by a series of crashes in recent months, including the failure of so-called stablecoin TerraUSD, the large US-based lender Celsius network pausing withdrawals, and the cryptocurrency fund. Singapore-based cryptocurrency hedge Three Arrows Capital, which has gone into liquidation.

Crypto lenders have been particularly affected and crypto exchange FTX has signed a deal with an option to buy embattled crypto lender BlockFi for up to $240 million, the company said last week.

Bitcoin, the world’s largest cryptocurrency, has lost around half its value since the beginning of May and was last trading at just under $20,000.

Vauld said he had appointed legal and financial advisers, was in talks with potential investors and would also apply to the Singapore courts for a moratorium that would halt any proceedings against him to give him time to carry out a restructuring.