Due to volatile market conditions and the impact on key business partners, Vauld will suspend withdrawals, trading and deposits on the platform.
Users had withdrawn $197.7 million since June 12 due to mounting fears over CeFi lenders, the same day Celsius announced similar actions to stabilize liquidity and operations. It is not known whether Vauld has bad debts and is facing default or margin calls that it can't meet at this stage.
Vauld has hired a team of advisors to examine the possibility of restructuring the company to protect stakeholders' interests.
The company s Twitter account has a message from Vauld co-founder Darshan Bathija, which reiterated the intent to find the best resolution for our customers. On June 16, as the Celsius saga was blowing up, Vauld tweeted it was business, implying that its balanced and conservative approach and fundamentally strong strategies stand it in good stead.
Vauld has no exposure to Three Arrows Capital or Celsius, and it remains sufficiently liquid, according to the accompanying blog post.
On June 21, Vauld announced a 30% cut in its workforce, according to Money Control.
Bathija said the cuts would affect marketing and talent acquisition roles. The axed employees will receive two months of pay, 12 months of health insurance, and help to find new employment.
In July 2021, Coinbase Ventures participated in a Series A funding round led by Valar Ventures, which said that VC-funded platforms tend not to have established real business models. Pantera and Robot Ventures are some of the prominent VC investors in the firm.