Vauld,a crypto lending and exchange startup headquartered in Singapore, has suspended withdrawals, trading, and deposits on its platform.
The company stated that due to “financial challenges”, it is taking such a step. Vauld is a popular lending platform in the crypto space with Valar Ventures, Coinbase Ventures, and Pantera Capital as their backers. Moreover, it has raised $27 million since its inception. However, the platform has stated that it is facing financial challenges amid the market downturn. Due to the market downturn, the platform saw about $198 million in withdrawals since June 12.
Darshan Bathija, Vauld founder and chief executive said that the startup is exploring restructuring options. As of now, they have engaged with Kroll for financial advice and Cyril Amarchand Mangaldas and Rajah & Tann for legal advice.
The startup intends to apply to the Singapore courts for a moratorium. The founder wrote in a blog post:
“We are confident that, with the advice of our financial and legal advisors, we will be able to reach a solution that will best protect the interests of Vauld’s customers and stakeholders.”
In addition to that, he said that the startup will make “specific arrangements” for certain customers who need to meet their margin calls.
Vauld’s basic platform provided “industry’s highest interest rates on major cryptocurrencies”. According to its website, it offered 12.68% annual yields on staking stablecoins such as USDC and BUSD.
Besides this, users staking Bitcoin and Ethereum will receive an annual yield of about 6.7% on their assets. Also, the platform offered customers to borrow against their tokens.