Vauld’s move came less than three weeks after the company said it was processing withdrawals “as usual and this will continue to be the case in the future.” The about-face hints at the speed with which plunging prices are rippling through the sector, bringing firms ranging from Celsius to hedge fund Three Arrows Capital to their knees.
Vauld, a crypto lender backed by Coinbase Inc., said it froze withdrawals and hired advisers to explore a potential restructuring, joining rivals from Celsius Network to Babel Finance in resorting to last-ditch measures to survive the market rout.
The Singapore-based company hired Kroll as financial adviser and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisers, CEO Darshan Bathija said in a blog post on Monday. All withdrawals, trading and deposits on the platform have been suspended.
