It’s quickly beginning to look like the bull case for bitcoin at this point is simply that further selling cannot occur, due to so many exchanges halting trading, along with withdrawals and deposits. Another crypto entity, known as Vauld, has placed a pause on operations, preventing clients from conducting transactions on its platform.
Vauld is said to be facing financial challenges as a result of the current market conditions within crypto. Reportedly more than $197.0 million has left the platform since June 12, leading the company to explore restructuring options as it works to “protect the interests of Vauld’s stakeholders.”
The move comes just days after industry peer Voyager Digital (TSX: VOYG) halted withdrawals, deposits and trading on its platform following loans made to Three Arrows Capital defaulting earlier in the week.
Vauld is reportedly in discussions with potential investors as a means of keeping its operations afloat, with the firm set to request a moratorium within the Singapore courts to enable it to receive some breathing space as it works to restructure. in the interim, legal advisors in both India and Singapore have been hired, along with Kroll Pte Limited, whom will act as a financial advisor to the company.
The actions come just weeks after the company indicated that it “continues to operate as usual despite volatile market conditions,” which was stated on June 16. Days later on June 21, the company revealed it had reduced its headcount by 30% as it looked to cut costs in a hurry. At the same time, marketing spend was cut and executive compensation was reportedly halved.
Vauld as of May reportedly had assets under management of roughly $1.0 billion, as per comments made by the CEO to BusinessLine.
Information for this briefing was found via Vauld and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
