Crypto lending and trading platform VAULD has stopped the transactions of customers amidst a huge decline in the market. Since June 12 in the selling, the customers from the Singapore firm started due to the stablecoin Terrausd's collapse.
Vauld is facing difficulties for several reasons. These include market volatility and financial difficulties of business partners. The firm, which has its big team in India, said that it is also considering restructuring options.
For this, along with hiring Financial Advisor by the firm, legal advisors have also been appointed in India and Singapore VAULD has also started negotiations with potential investors.
The firm said, "We are exploring all possible options in association with our financial and legal advisors to protect the interests of the firm's stakeholders."
Earlier, Crypto Lending firm Celsius Network banned the transactions of customers. The firm's decision to ban the transactions of the clients is being investigated by the regulators.
Celsius had said that due to the poor condition of the crypto market, it is prohibiting the withdrawal and transfer among the accounts. Some regulators, including the Texas State Security Board, are investigating the decision to ban the transactions of this firm having a headquarters in the US.
The US Securities and Exchange Commission (SEC) has also sought information from the firm about this. Joseph Borg, director of the Alabama Securities Commission, said, "I am painted that the clients of the firm, including retail investors, may need to redeem their assets but they can do so. This may increase their financial difficulties."
Many firms of this segment are cutting their workforce to reduce the cost. One of the large crypto exchanges, Coinbase also recently decided to reduce its workforce by 18 percent.
The exchange says that in this difficult period of the industry, it has taken this step to reduce the cost. The decision is estimated to be trimmed by more than 1,000 employees of the exchange.
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