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Crypto Exchange Vauld Makes Depositors Wait on Funds

Vauld deposits

Singapore-based crypto exchange company Vauld has abruptly suspended withdrawals, trading, and deposits, with immediate effect. Causes involve restructuring with its financial and legal advisors.

In a corporate statement published last week, CEO Darshan Bathija claimed that Vauld is ‘in discussions with potential investors’ to give them breathing room in restructuring the platform. 

The statement claims that as a result of the collapse of Terraform Labs’ UST stablecoin, a significant number of customers have withdrawn an excess of $197.7 from Vauld since 12 June 2022. At its peak, Vauld had managing assets of close to $1 billion. 

However, Vauld supporters were made anxious upon Telegram messages on July 8th from Bathija stating that Vauld is going through an audit, and “tenure and asset liability positions are yet to to be assessed”. 

In response to several depositors via Telegram, Bathija has stated that the market is yet to see through who has indirect exposure to the May 2022 UST crash. Bathija has explicitly mentioned that Vauld does not have direct exposure to Celcius, Voyager, Babel, or 3AC – which have all faced insolvency resulting from the troubled market.

Rumours have been circulating that Vauld customers are expected to lose parts of their assets deposited into the platform. However, London-based crypto lender Nexo has started processes to potentially acquire up to 100% of Vauld. 

Nexo’s interest in Vauld lies in Vauld’s “huge traction” in India and Southeast Asia – where Nexo has expressed interest in tapping into the respective regions’ markets.

“The Nexo team is in a strong financial and liquidity position, bootstrapped and having never raised external capital with a solid equity cushion, which is also visible in our real-time reserves audit available here,” stated Kiril Nikolov, DeFi strategist at Nexo.

Vauld is not the only struggling crypto lender that Nexo has entered talks with. In June, Nexo approached crypto lender Celcius’ assets – however Celcius declined.

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