More companies are taking drastic measures to protect themselves as the turmoil in the cryptocurrency industry worsens, even if it means denying access to funds for their own clients.
Vauld, a Singapore-based platform for crypto lending, announced on Monday that it was stopping all deposits, trades, and withdrawals from its users.
Since June 12, when the collapse of Terraform Lab’s UST stablecoin, the Celsius network’s pausing of withdrawals, and Three Arrows Capital’s default on their loans caused the cryptocurrency market to decline, a sizable amount of customer withdrawals exceeding $197.7 million have taken place, according to Darshan Bathija, CEO of Vauld.
According to a blog post by CEO Darshan Bathija on Monday, Vauld has hired Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal and financial advisers, respectively.
Additionally, potential investors are being discussed by the company. To give itself “breathing room to carry out the proposed restructuring exercise,” it intends to ask Singapore courts for a moratorium, according to Bathija.
According to the company, specific arrangements will be made for customer deposits as may be necessary for some customers to meet margin calls in connection with collateralized loans.