Crypto lending and trading platform Vuld has halted customer transactions amid a sharp drop in the market. Since June 12, in a sell-off triggered by the collapse of stablecoin TerraUSD, customers from the Singapore firm have withdrawn approximately $198 million.
Vault is facing difficulties for many reasons. These include market volatility and financial difficulties of business partners. The firm, which has a large team in India, said it is also looking at restructuring options.
For this, along with hiring Kroll as a financial advisor, legal advisors have also been appointed in India and Singapore, Vault has also started talks with potential investors. “We, along with our financial and legal advisors, are exploring all possible options to protect the interests of the firm’s stakeholders,” the firm said.
Earlier, crypto lending firm Celsius Network had banned the transactions of customers. The firm’s decision to freeze transactions to clients is being probed by the regulators. Celsius had said that due to the poor condition of the crypto market, it is prohibiting withdrawal and transfer between accounts.
The US-headquartered firm’s decision to freeze transactions is being probed by some regulators, including the Texas State Security Board. The US Securities and Exchange Commission (SEC) has also sought information from the firm in this regard. Joseph Borg, director of the Alabama Securities Commission, said, “I am concerned that the firm’s clients, including retail investors, may be required to redeem their assets but they may do so. This could add to their financial difficulties.”
Many firms in this segment are cutting their workforce to reduce costs. Coinbase, one of the major crypto exchanges, also recently decided to reduce its workforce by 18 percent. The exchange says that in this difficult phase of the industry, it has taken this step to reduce costs. The decision is expected to result in layoffs of over 1,000 employees of the exchange.