Crypto lending platform Vauld suspends withdrawals, trading and deposits due to financial issues

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Vauld, a Singapore-headquartered crypto lending startup, has suspended withdrawals, trading and deposits on its namesake platform with immediate effect as it navigates “financial challenges,” it said in a post on Monday.

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The startup, whose backers include Peter Thiel-backed Valar Ventures, Coinbase Ventures and Pantera Capital, which has raised about $27 million, said it is facing financial problems amid the downturn in the market, with clients withdrawing about $198 million since June 12.

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Vauld founder and CEO Darshan Batija said the startup is exploring restructuring options and partnered with Kroll for financial advice and with Cyril Amarchand Mangaldas and Rajah & Tann for legal advice in India and Singapore.

“We are confident that, with the advice of our financial and legal advisors, we will be able to find a solution that will best protect the interests of Vauld’s clients and stakeholders,” he wrote on his blog.

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Vauld allows clients to earn what it claims is the “highest interest rate in the industry for major cryptocurrencies.” Its website says it offers 12.68% annualized returns on multiple so-called stablecoins, including USDC and BUSD, and 6.7% on Bitcoin and Ethereum tokens.

An illustration of how Wold works. (Image: Wald)

“We are committed to ensuring that Vauld platform customers understand that we will not be able to process any new or further requests or instructions in this regard. Special arrangements will be made for client deposits that some clients may need to meet margin requirements in connection with secured loans,” Batia wrote today.

The announcement follows Vauld cutting its workforce by 30% two weeks ago.

This step comes as a surprise. On June 16, Batia assured Vauld customers that the platform was not related to Celsius, another lending startup that facing growing financial problemsand Three Arrows Capital, one of the well-known cryptocurrency hedge funds, filed for Chapter 15 bankruptcy over the weekend.

“We remain liquid despite market conditions. Over the past few days, all withdrawals have been processed as normal and will continue to be so in the future.” – Batia wrote earlier.


Credit: techcrunch.com /

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