Vauld Pauses Client Withdrawals, Seeks Advice on Future Restructuring
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According to Bathija, several variables, such as an unstable market and the financial troubles of business partners, are contributing to Vauld's financial difficulties. According to Bathija, the implosion of the TerraUSD stablecoin, Celsius's decision to cease withdrawals, and Three Arrows Capital's problems were the causes of the platform's customer withdrawals, which totaled approximately $198 million since June 12.
Vauld Opens For Restructuring Options
Vauld is open to future reorganizational strategies. To that purpose, the company has appointed Kroll as its financial advisor, Cyril Amarchand Mangaldas as its legal counsel in India, and Rajah & Tann Singapore LLP as its legal advisor in Singapore.
Vauld is currently also in discussions with potential investors, according to Bathija. He said,
"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, to give us breathing space to carry out the proposed restructuring exercise,"
High-profile investors such as Peter Thiel's Valar Ventures, Coinbase Ventures, and Pantera Capital support Vauld (previously Bank of Hodlers). To date, the company has secured $27.5 million in investment.