In a statement published on the company’s website, Vauld CEO Darshan Bathija wrote that the decision comes 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 $197.7.”
A financially struggling platform has become one of the crypto companies that recently halted all operations, preceded by Celsius, CoinFLEX, and Voyager Digital. As market tumult caused by the Terra meltdown and Three Arrows Capital bankruptcy pushes many businesses to the brink of shutting down, Vauld is exploring potential restructuring options. For this purpose, the company hired Kroll as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore, respectively.
“We are confident that, with the advice of our financial and legal advisors, we will be able to reach a solution that will best protect the interests of Vauld’s customers and stakeholders,” the company assured stakeholders.
Vauld also declared it will apply to the Singapore courts for a moratorium, which means that all proceedings against the firm will be temporarily suspended until it comes with a restructuring solution.
During its most recent funding round in July 2021, Vauld raised $25m in a Series A led by PayPal co-founder Peter Thiel’s Valar Ventures with participation from Coinbase and Pantera Capital. The company’s CEO Darshan Bathija and co-founder Sanju Kurian even appeared on Forbes Asia’s 30 under 30 list. Despite such impressive performance, two weeks ago Vauld announced it laid off 30% of its staff and cut executive compensation by 50% in a bid to survive a down period.