The Singapore-based cryptocurrency platform Vauld has made the decision to halt all withdrawals, trading, and deposits on the platform due to recent market stress. Vauld feels this will make it easier to explore restructuring possibilities in the future.
Darshan Bathija, Chief Executive Officer has said that the company is facing financial challenges despite its best efforts.
"This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7 m since 12 June 2022," he said in a statement published on company's website on Monday.
The decline of the cryptocurrency market was triggered by the collapse of Terraform Lab's UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans, he added.
Vauld has engaged the services of Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as the legal advisors in India and Singapore, respectively.
"Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyse all possible options, including potential restructuring options, that would best protect the interests of Vauld's stakeholders," Chief Executive Officer stated further.
Launched in 2018, the crypto platform intends to apply to the Singapore courts for a moratorium -- a suspension of the commencement or continuation of any proceedings against the relevant companies so as to give the company a breathing space to carry out the proposed restructuring exercise.
"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," he added.
The value of Bitcoin as a crypto asset has tumbled 55 per cent so far in 2022. The crypto market, at large, has fallen by about a third since it hit its peak sometime in November last year and left many investors poorer.