Singapore-based Vauld became the latest crypto firm to suspend withdrawals and trading on Monday, saying that it would seek new investors amid volatile market conditions and the financial difficulties of key business partners.
The crypto lending and trading platform’s CEO Darshan Bathija said in a blog post that the action was taken because of ‘’financial challenges,’’ and a “market climate’’ that had led to customer withdrawals in excess of $197.7 million since June 12.
The move is the latest in a long line of rippling blows to crypto platforms. Vauld has enlisted advisors to help protect the company from any further downturn, it said.
The industry has been shaken by a series of collapses in recent months including the failure of so-called stablecoin TerraUSD, large US-based lender Celsius network pausing withdrawals, and Singapore-based crypto hedge fund Three Arrows Capital entering 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 early May, and was last trading at just under $20,000.
Vauld said it was in discussions with potential investors, and would also apply to the Singapore courts for a moratorium that would have any proceedings against it halted to give it time to carry out a restructuring.
Vauld did not immediately respond to an emailed request for comment.
- Reuters, with additional editing from Alfie Habershon