This crypto exchange is shutting down due to ‘financial challenges’

Financial challenges the crypto exchange calls it, which prevents people from trading or withdrawing their money.

The crypto dip has far-reaching consequences. Not only for people and organizations with the digital currencies, but also for the platforms on which trading can take place. Singapore-based crypto exchange Vauld is the latest crypto platform to suspend all withdrawals, deposits and trading. This with reference to “financial challenges”. This amid persistently sour market conditions.

Crypto exchange is closing things up

In a blog post, CEO Darshan Bathija said the crypto platform is “facing financial challenges”. This is due to a mix of factors, including the financial difficulties of their business partners. And the current market uncertainty that has led to a significant number of customer withdrawals. That is, more than USD 197.7 million since June 12.

“As such, we considered that it would be in the best interest of stakeholders to take immediate action in the circumstances,” Bathija said. Adding that they will work with financial and legal advisors to explore all possible options, including restructuring, that can help the company address these financial problems.

Vauld

He also said Vauld plans to file an application for deferral in the Singapore courts. But also an official period of delay in the performance of a legal obligation or the payment of a debt. Which would give the company “breathing room” to implement the proposed restructuring.

“In the meantime, we have made the difficult decision. The decision is to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect,” Bathija added. “We believe this will help us. This is to investigate the suitability of possible restructuring options together with our financial and legal advisors.”

Not many people in the Netherlands will have an account with Vauld, but it could be a harbinger of more misery on other platforms.