The CEO of the leading crypto trading platform Vauld has revealed that the cryptocurrency exchange is going to halt all trading, deposits, and withdrawals because of ongoing financial difficulties in the financial markets. Vauld, a crypto exchange that complies with KYC standards and is based in India, has temporarily halted all trading, withdrawals, and deposits due to macroeconomic issues.
The CEO of the cryptocurrency company, Darshan Bathija, announced the news in a blog post that was published on the official website of the cryptocurrency exchange. The post revealed that the crypto exchange is going to suspend all trading as well as deposits and withdrawals because it is experiencing financial complications.
Factors Forcing Vauld To Suspend Its Services
The CEO of Vauld elaborated on the factors that contributed to the company’s current financial crisis. Since the 12th of June, he stated that consumers have withdrawn more than $197.7 million from the cryptocurrency exchange due to several unfavorable triggers in the overall cryptocurrency markets.
He stated that this is due to a combination of situations such as the adverse market conditions, the financial struggles of Vauld’s major business associates ultimately affecting it, and the current market environment which has led to a considerable amount of client withdrawals in excess of $197.7 million since the 12th of June 2022.
Due to the general slowdown in the economy, the stock market had to let go of 30% of its workforce not too long ago. Such market conditions are now forcing major crypto trading platforms like Vauld to cease operations and stop offering their services to clients.
The Road To Rescue For Vauld
Vauld’s CEO Darshan Bhatija highlighted a number of different initiatives that the trading platform has done in order to come back on track and ease the burden on its most important stakeholders. This includes selecting legal and financial counsel for the company in order to find a way to mitigate financial troubles.
On his blog, Darshan Bhatija wrote that Vauld has hired Kroll Pte Limited to serve as its financial advisor. In addition to this, the trading platform has enlisted the assistance of the law firms Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP to serve as its legal advisors in the countries of India and Singapore, respectively.
In addition to this, Darshan Bhatija brought everyone’s attention to the fact that the crypto exchange is actively seeking prospective investors in the hopes of rescuing them from their current financial predicament. He also alerted readers of his blog about the upcoming application for a halt in the exchange’s case before the Singapore court.
According to Darshan Bhatija, the platform is now engaging in negotiations with prospective investors in the Vauld group of firms. It is their intention to file a petition with the Singapore courts requesting a moratorium, which would put a hold on any legal action taken against the relevant corporations, whether it be at the beginning or at any point along the process. This will be done in order to provide Vauld with some breathing room so that they can carry out the reorganization exercise that has been recommended.
In addition, last week cryptocurrency broker Voyager Digital also suspended all activities on its platform.