Indian crypto lender Vauld has suspended withdrawals as it faces financial challenges during the crypto bear market.

Vauld Suspends Withdrawals

The crypto market crash has affected numerous crypto companies, and its latest victim is Vauld. The Indian crypto lender decided on Monday to suspend withdrawals, as well as trading and deposits on the platform. The lender stated that the market’s high volatility has left it with financial challenges.

One of the primary reasons for Vauld’s financial woes is numerous customers withdrawing almost $200 million since mid-June. The company is backed by Coinbase and investor and Paypal co-founder Peter Thiel. But it seems that’s not enough for operations to continue without a hitch as Vauld CEO Darshan Bathija said the company was exploring all possible options, including restructuring options. Bathija said that the options explored would best protect the interests of Vauld’s stakeholders.

Bathija stated in a June 16 blog that Vauld had processed withdrawals and would continue to do so in the near future. That future came sooner than some investors anticipated.

Other Crypto Company Casualties

Vauld isn’t the only company to suffer financial woes after Bitcoin dragged the rest of the market with it since its all-time high (ATH) set in November 2021. Crypto firms halting withdrawals have proven that investors are better off keeping their assets offline and secure in one of the best crypto wallets.

Celsius Network, a cryptocurrency loan company, announced on June 12 that it had paused withdrawals, swaps and transfers between accounts. The company was valued at $3.5 billion after expanding its $400 million funding round in October 2021 and went on to receive $750 million due to oversubscription in the firm’s capital raise.

Just this past Friday, July 1, crypto broker Voyager Digital announced that it had suspended trading, deposits and withdrawals. Voyager claimed that Three Arrows, a crypto hedge fund ordered to liquidate on 27 June by a court in the British Virgin Islands, didn’t make good on its $65 million loan. BlockFi, a cryptocurrency exchange, said its $80 million losses were connected to Three Arrows.

Some of the best crypto exchanges such as Coinbase, and Gemini had retrenched workers to survive the crypto winter.

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