Key points:
- Vauld, The Crypto Lender Paused Withdrawals on Monday
- Withdrawals Of Nearly $200 Million Since June 12 Has Prompted the Action
- Vauld Just Another Cryptocurrency Player Feeling the Chill Of The Crypto Winter
The crypto winter that has led to the crypto freeze has claimed another victim as on Monday the crypto lender Vauld announced they were pausing all withdrawals, as well as deposits and trading on its platform. This has been driven by “financial challenges” as customers have withdrawn funds in the wake of the 2022 crypto bear market. Vauld’s name is added to the growing lists of crypto sector companies that have come under increasing stress during the current, significant downturn.
Vauld, The Crypto Lender Paused Withdrawals on Monday
In a now far from surprising move, Vauld the Singapore based crypto exchange and lender announced that it is currently experiencing “financial challenges” and has suspended operations as they navigate their way out of this difficult situation. In the first of a series of Tweets, Vauld stated:
“We are facing challenges despite our best efforts. This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate.”
Also Read: Secure Crypto Brokers
Withdrawals Of Nearly $200 Million Since June 12 Has Prompted the Action
The suspension of withdrawals, deposits and trading has been driven by a surge in withdrawals by Vauld’s client base. In a further Tweet relating to the challenges and highlighting the contagion nature of the action, the crypto lender posted:
“This has resulted in significant customer withdrawals in excess of $197.7 million since June 12, 2022 when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius Network pausing withdrawals, and 3AC defaulting on loans.”
Vauld Just Another Cryptocurrency Player Feeling the Chill Of The Crypto Winter
As implied above in the Tweet from Vauld, volatile market conditions driven by the crypto winter has seen a domino effect as numerous exchanges and lender in the crypto world have suffered since the collapse of Terra ecosystem and stablecoin. Causalities now include the large crypto lending firm Celsius, the multibillion dollar crypto hedge fund, Three Arrows Capital (3AC), Coinflex, who have issued a new token after a client failed to repay a debt, and even the crypto exchange leader Binance temporary paused withdrawals in mid-June.