Cryptocurrency exchange platform Vauld has announced to the general public that it will be suspending all trading, deposits, and withdrawal activities on the platform. Vauld was founded in 2018 by Bathija and Sanju Kurian to provide a collection of products for cryptocurrency investors including fixed deposits, asset-backed lending, and borrowing platforms.

They stated that the major reason behind such a difficult decision is the current turbulence of the general economic market which is financially challenging despite their best efforts to keep providing services.

The company said in a blog post, that the current unfavorable market climate had led to mass withdrawals to the tune of over $198 million by customers since June 12. As a result, the company is facing serious financial problems in trying to keep up with the continued mass withdrawals by customers who are panicking over the security of their investments in the cryptocurrency market.

The decline of the cryptocurrency market was triggered by the fall of Terraform Lab’s Terra-Luna coin. This news was followed by the Celsius network pausing withdrawals and the hat-trick of the disaster was completed by Three Arrows Capital (3AC) defaulting on their loans. The culmination of these has negatively impacted Vauld’s operations and the cryptocurrency ecosystem at large.

The three-year-old company had raised close to $28 million from seed rounds and investors which include Coinbase Ventures, Pantera Capital, and Valar Ventures. They are also still currently in talks with potential investors to hand them a lifeline to resume operations.

Vauld is also looking to apply to the Singaporean Courts for a moratorium which is a suspension of the beginning of proceedings against a company to give the company some breathing space to carry out some restrictions or rebuilding.

If granted, the moratorium could prove to be a more important lifeline than the prospective investors as the market could pick up some pace and recorrect the downtrend in that moratorium time.

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