The State of the Market Forces Vauld to Cancel all Withdrawals, Transactions, and Deposits

The State of the Market Forces Vauld to Cancel all withdrawals, transactions, and deposits
Table of Contents

In an announcement published by Vauld, it was announced that the company is faced with financial challenges. There are a number of factors that have contributed to this situation. Due to factors such as volatile market conditions and the current market climate, and some other incidents, there have been over $197.7 million in withdrawals from customers since 12 June 2022 as a result of several factors.

After Terraform Lab crashed its UST stablecoin some weeks ago, Celsius network paused withdrawals, and Three Arrows Capital defaulted on its loan obligations, there caused a general decline in the cryptocurrency market.

Taking the Next Steps

As a result, the company has decided that taking immediate action in the circumstances would be in the best interests of all stakeholders, as this would be in the best interest of the company. The special counsels and consultants were commissioned on behalf of Vauld to conduct this leading role, and to accomplish this, Vauld engaged Kroll Pte Limited as the financial advisor and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as the legal advisors in Singapore and India, respectively.

Vauld’s management maintains the belief that it is fully committed to working with financial and legal advisors to the best of its ability in order to explore and analyze all possible options that might be available to Vauld’s stakeholders, including potential reorganization options, at the time of this announcement.

There is currently a discussion taking place between Vauld and potential investors as part of the Vauld group of companies. In order to give the company a breathing space to carry out the proposed restructuring exercise, the company proposes to petition the Singapore courts for a moratorium, meaning that any proceedings against the relevant companies will be suspended so that the company can carry out the restructuring exercise without delays.    

Vauld states that they are confident that with the advice of their financial and legal advisors, they will be able to come to an agreement that will ensure that the interests of Vauld’s customers and stakeholders are protected to the greatest extent possible.

according to the announcement:

“In the meantime, we have made the difficult decision to suspend all withdrawals, trading, and deposits on the Vauld platform with immediate effect. We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors.”

There are no new or further requests or instructions in this regard that can be processed by Vauld at the moment. The company desires for its customers to understand that they will not be able to process any new or further requests or instructions in this regard. In the case of collateralized loans for which margin calls may be required, specific arrangements will be made for customer deposits to meet margin calls, as may be necessary in the case of certain customers. 


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews