Citing the reason for it being “financial challenges”, the Singapore-based company said it was suspending withdrawals, trades and deposits on its platform.
Coinbase-backed crypto exchange Vauld has announced that it is suspending all withdrawals, trades and deposits with immediate effect.
Vauld said he was ceasing all withdrawals, transactions and deposits on his platform. Citing the reason for it being “financial challenges”, the Singapore-based company said volatile market conditions also contributed to the decision.
Trouble at Vauld appeared to be brewing for some time, as the crypto exchange previously announced it was cutting its workforce by 30% in June. In the announcement, Vauld also said he was cutting marketing spending, slowing hiring efforts and cutting executive pay by 50%. The company had cited the economic downturn as the reason.
“We believe this will facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors. instructions in this regard,” Vauld wrote on his blog, commenting on the trading suspension.
The company would arrange for customer deposits to meet margin calls related to secured loans.
Vauld also revealed that he is currently looking for potential investors.
The company also intends to apply to the Singapore courts for a moratorium that would suspend the initiation or continuation of any proceedings against the affected companies. This would give Vauld “much-needed breathing space to complete the proposed restructuring exercise,” the company said.