Singapore-Based Crypto Lending Firm Vauld Halts All Activity Due To Market Wipeout

Singapore-based crypto lending and trading platform Vauld said Monday that it would halt all withdrawals, deposits and trading activities. In a statement, the firm explained several reasons for the same, ranging from the current bearish market to the Celsius liquidity crunch.

Vauld has been backed by well-known firms like Coinbase Ventures, PayPal co-founder Peter Thiel's Valar Ventures, Pantera Capital, CMT Digital, Gumi Cryptos, Robert Leshner, and Cadenza Capital.

In the corporate statement, Vauld explained that it has been adversely affected by 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."

Vauld confirmed that it had been affected by the decline of the cryptocurrency market which was "triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans."

The firm has also taken the services of Kroll Pte Limited as its financial partner. Kroll provides restructuring and insolvency services to investors, asset managers, companies, and lenders and will play a key role in Vauld's investigation of "potential restructuring options."

Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP have joined the crypto lender as legal partners.

"Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders," the firm said.