JAKARTA – The decline in crypto prices in the last few weeks has made many companies doing cryptocurrency business experience difficulties. Singapore-based crypto lending and trading platform Vauld announced on Monday, July 4 that it will be suspending cryptocurrency withdrawals and trading.
The company is also looking for new investors, which indicates that the crypto industry is under a lot of pressure at the moment.
Vault CEO Darshan Bathija said in a blog post that he faced formidable "financial challenges".
"The volatile market conditions, the financial difficulties of our key business partners have definitely affected us, and the current market climate that has led to a significant amount of customer withdrawals of more than 197.7 million US dollars (Rp 2.9 trillion) since 12 June, ' Bathija wrote in a company blog post, which was also cited by Reuters.
The crypto industry has indeed been rocked by a series of crashes in recent months including the failure of stablecoin TerraUSD. Even a large US-based lender's network, Celsius, was forced to halt withdrawals. Then Singapore-based crypto hedge fund Three Arrows Capital went into liquidation.
Crypto lenders have been heavily affected and crypto exchange, FTX, has signed a deal with an option to buy embattled crypto lender BlockFi for up to $240 million, the company said last week.
Bitcoin, the largest cryptocurrency in the world today, has lost about half its value since early May, and was last trading below 20,000 US dollars.
Vauld said he had appointed legal and financial advisers, and was in discussions with potential investors. In addition they will also apply for a moratorium to the Singapore courts which will halt any process to allow time for restructuring.
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