Coinbase-backed Indian crypto exchange Vauld suspends trading, deposits and withdrawals amid market downturn

• Vauld said that it is exploring all options with its financial and legal advisors.
• The company won’t be accepting new requests at the moment, but will provide special instances for collateralized loans.
• Vauld laid off 30% of its staff last month.

Indian crypto exchange, Vauld, has suspended trading, deposits and withdrawals on its platform citing financial challenges amid the market’s recent bear turn. In an blog statement posted on its website, the company’s management informed users that it is “facing financial challenges.”

Further, it said that it would be in the “best interest” of stakeholders to “take immediate action”.

The firm has engaged Kroll as its financial advisor, and law firm Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as their legal advisors, in India and Singapore, respectively. It said that the company will be exploring “all possible options” which include restructuring options.

“We are currently in discussions with potential investors into the Vauld group of companies. We intend to apply to the Singapore courts for a moratorium i.e. a suspension of the commencement or continuation of any proceedings against the relevant companies so as to give us breathing space to carry out the proposed restructuring exercise,” the statement added.

As it stands, the exchange’s customers will not be able to deposit or withdraw money from the platform, and the company won’t be processing any new requests or instructions from customers. It said that “specific arrangements” will be made for customers to meet margin calls in connection with collateralized loans.

Backed by Coinbase, Vauld is the first crypto exchange in India to officially be impacted by the market’s recent downturn. The company laid off 30% of its staff last month, similar to global crypto platforms, which have also been affected by the market’s bear turn.

SEE ALSO:
BlockFi's CEO denies that Sam Bankman-Fried's FTX is nearing a deal to buy the struggling $1 billion crypto lender for $25 million
The FBI is offering a $100,000 reward for missing Bulgarian 'Cryptoqueen' and has added her to its top 10 most-wanted list