Vauld, a KYC compliant crypto exchange operating in India, has suspended all withdrawals, deposits and trading citing financial challenges.
In a blog posted on the exchange’s official website, Darshan Bathija, the CEO of the crypto company broke the news that due to financial challenges, the crypto exchange is suspending all trading, deposits and withdrawals.
Bhatija highlighted various steps that the exchange has taken to get back on track and soften the blow on its key stakeholders. This includes appointing financial and legal advisors.
His blog read: “We have engaged the services of Kroll Pte Limited as our financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as our legal advisors in India and Singapore respectively.”
He also pointed out that the exchange is looking for potential investors to take them out this financial rout. He also informed via his blog that the exchange is going to apply for moratorium in the Singapore court.
He wrote, “We are currently in discussions with potential investors into the Vauld group of companies. We intend to apply to the Singapore courts for a moratorium i.e. a suspension of the commencement or continuation of any proceedings against the relevant companies so as to give us breathing space to carry out the proposed restructuring exercise.”
The CEO highlighted the reasons that caused these financial troubles for the exchange. He claimed that customers have withdrawn over $197.7 million from the crypto exchange since June 12 due to various negative triggers in the crypto markets.
He said, “This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7m since 12 June 2022.”
The exchange, which is backed by some of the big-ticket names like Coinbase and Peter Thiel, had recently laid off 30 per cent of its employees due to the general economic downturn.
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