SG crypto platform pauses withdrawals amid industry crisis

Vauld, a Singapore-based crypto platform, has announced a suspension of withdrawals, trades, and deposits, citing financial challenges faced by the firm.

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The platform pointed to volatile market conditions and the indirect effect of financial difficulties faced by key business partners as reasons for the decision.

The platform saw over S$197 million (US$141.5 million) in customer withdrawals since mid-June, which followed a slew of hits to the crypto industry. This included freefalling token prices, the collapse of TerraUSD, the Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.

“We believe that this (the suspension) will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors,” said Vauld CEO Darshan Bathija in a statement.

However, specific arrangements are available for customer deposits on an as-needed basis for the firm to repay loans.

The firm will be working with Kroll as a financial advisor, with Cyril Amarchand Mangaldas and Rajah & Tann Singapore as legal advisors in India and Singapore, respectively. They will be exploring possible options, including restructuring.

Vauld is also meeting with potential investors and will apply to the Singapore courts for a moratorium on any proceedings faced by the firm. This would allow Vauld the chance to carry out a proposed restructuring exercise.

Currency converted from SG dollar to US dollar: US$1 = S$1.40.

See also: First Luna, now Celsius. What’s behind the latest crypto crisis?