Coinbase-backed Vauld becomes the latest crypto lender to pause withdrawals

Vauld announced July 4 that it volition instantly suspend withdrawals, trading, and deposits connected the level owed to volatile marketplace conditions and the interaction connected cardinal concern partners.

The connection besides mentioned that users had withdrawn $197.7 cardinal since June 12 owed to mounting fears implicit CeFi lenders the aforesaid time Celsius announced akin actions to “stabilize liquidity and operations.”

At this stage, it is unclear whether Vauld has atrocious debts and is facing default oregon borderline calls it cannot meet.

Vauld explores restructuring

Vauld said it had hired a squad of advisors to research the anticipation of restructuring the institution to support stakeholders’ interests.

“In furtherance of this, we person engaged the services of Kroll Pte Limited arsenic our fiscal advisor, arsenic good arsenic Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP arsenic our ineligible advisors successful India and Singapore respectively.”

A connection from Vauld co-founder Darshan Bathija via the company’s Twitter relationship reiterated the intent to find “the champion solution for our customers.”

We've strived to beryllium an fantabulous crypto lending platform. This has been our extremity from time one. We’re committed to uncovering the champion solution for our customers.

A connection from @darshanbathija

— Vauld (@VauldOfficial) July 4, 2022

On June 16, arsenic the Celsius saga was blowing up, Vauld tweeted it was business, implying that its “balanced and blimpish approach” and “fundamentally beardown strategies” basal it successful bully stead.

The accompanying blog post stated that Vauld has nary vulnerability to Three Arrows Capital oregon Celsius, and it remains sufficiently liquid.

Vauld continues to run arsenic usual

"We person ever maintained a balanced and blimpish attack to liquidity management. Bull and carnivore runs are inevitable, and we deploy fundamentally beardown strategies that relationship for these cycles."

Read much here: https://t.co/6yWVozTydE

— Vauld (@VauldOfficial) June 16, 2022

The communicative unravels

Days later, connected June 21, Vauld announced a 30% chopped successful its workforce, according to Money Control.

Bathija said the cuts would chiefly impact selling and endowment acquisition roles. But axed employees volition person two-months pay, 12 months of wellness insurance, and assistance to find caller employment.

“Two months of their salaries paid arsenic a severance outgo and clasp their signing and/or joining bonus, 12 months wellness security for them and their family, and our endowment squad moving intimately with them to find a large spot to work.”

Commenting successful wide terms, Binance laminitis Changpeng Zhao (CZ) said VC-funded platforms thin not to person established “real concern model[s].”

Unpopular opinion: cautious erstwhile utilizing platforms that necessitate VC funding, they often don't person a existent concern exemplary yet.

(over generalization, determination are exceptions of course)https://t.co/lI1pvdPdKr

— CZ Binance (@cz_binance) July 4, 2022

Vauld raised $25 million successful a Series A backing circular led by Valar Ventures, with Coinbase Ventures participating, successful July 2021. Other salient VC investors successful the steadfast see Pantera and Robot Ventures.

The station Coinbase-backed Vauld becomes the latest crypto lender to intermission withdrawals appeared archetypal connected CryptoSlate.