The Singapore-based crypto-lending platform Vauld announced a potential restructuring. Trading, withdrawal and custody of funds have been suspended.
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— Vauld (@VauldOfficial) July 4, 2022
Management attributed the decision to financial difficulties arising from weak market conditions, counterparty issues and a liquidity outflow. Since June 12, clients withdrew $197.7 million from the platform.
To implement the initiative, the startup hired Kroll Pte Limited as financial adviser, as well as the law firms Cyril Amarchand Mangaldas and Rajah & Tann Singapore.
Vauld will consider all options, including restructuring, that would best protect the interests of stakeholders. The company has begun talks with potential investors and intends to obtain a moratorium on proceedings in Singapore courts.
In July 2021, Vauld attracted $25 million from Valar Ventures and other investors.
At the end of 2020, the startup was backed by Coinbase Ventures and Pantera Capital in a $2 million round.
Earlier, the crypto broker Voyager announced a halt to trading and withdrawals. The hedge fund Three Arrows Capital filed for bankruptcy.