The suspension comes a few months after the crypto giant reported that it grew to $1 billion in assets under management.
Vauld, a Singapore-based crypto lender founded in 2018 and backed by Coinbase, has recently halted all of its withdrawals, trading, and deposits amid the current crypto bear market.
According to the official announcement issued on July 4th, one of the main reasons why Vauld decided to take such drastic actions was due to the customers’ constant withdrawals that resulted in excess of $197.7 million. On top of that, the firm also cited the collapse of Terra's UST stablecoin and Three Arrows Capital's default on their loans.
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Because of this, the crypto exchange is reportedly “exploring potential restructuring options” by hiring Kroll as financial adviser and Cyril Armachand Mangaldas and Rajah & Tann Singapore as legal advisers.
More notably, the company will also “apply to the Singapore courts for a moratorium” to “carry out the proposed restructuring exercise” with more ease.
The news actually arrives three weeks later when Vauld issued a statement, indicating that the exchange would continue operating as usual despite the harsh market conditions. The company added:
"We have always maintained a balanced and conservative approach to liquidity management. Bull and bear runs are inevitable, and we deploy fundamentally strong strategies that account for these cycles."
On top of that, back in June, Darshan Bathija, the CEO of Vauld, announced that the company would be reducing its headcount by around 30%, as well as slowing down the process of hiring, reducing marketing expenses, and executive compensation by 50%.
In fact, Vauld isn’t the only company to request assistance from various restructuring lawyers, as earlier this year, Celsius and Babel Finance also took drastic steps to survive the market downfall.
