Vauld, the Coinbase-backed Indian cryptocurrency exchange, said on Monday it is suspending all withdrawals, trading and deposits as it battles financial challenges.
Darshan Bathija, Vauld’s co-founder and CEO, in a blog post on the company’s website talked about the financial difficulties of business partners and customer withdrawals in excess of $197.7 million since June 12 when the cryptocurrency market declined after the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on loans.
Singapore-based Vauld said it is looking for new potential investors as it considers the option of restructuring. Vauld will consider a moratorium before the Singapore courts, “so as to give us breathing space to carry out the proposed restructuring exercise.”
The company said that it would be in the best interests of stakeholders to take immediate action in the circumstances. “In furtherance of this, we have engaged the services of Kroll Pte Limited as our financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as our legal advisors in India and Singapore respectively,” said Bathija.
The company was in the news lately as it sacked almost 30 per cent of its workforce.
Other than the global meltdown, cryptocurrency exchanges in India are facing challenges in the form of additional taxes. The Indian government recently announced a 1 per cent tax deducted at source along with a 30 per cent tax on gains from virtual digital assets.
“Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyse all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders,” said Bathija in the blog post.
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