With the ever-increasing number of companies cryptocurrencies collapsing, the lending platform vault, backed by Coinbase, turned out to be the latest cryptocurrency company to freeze its withdrawals.
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Formerly called Bank of Hodlers, the platform used to negotiate cryptocurrency loans, which is headquartered in Singapore, ended up interrupting withdrawals last Sunday, July 3. In a post published the following morning, the company's CEO Darshan Bathija reported that the company had taken the decision to suspend all withdrawals with immediate effect, notification that came through a statement from Vauld, which also informed about the volatility of the Marketplace.
The company blamed the collapse and freezing of withdrawals on the Terra (Luna) cryptocurrency, and also reported that approximately $200 million had been withdrawn since June 12, 2022.
Vauld was created three years ago, promising income through cryptocurrency loans. According to the company's official announcement, the reason for this decision to block withdrawals is given by the financial challenges that Vauld could not face at the moment.
The founder of the platform said that he has been looking for opportunities to be able to restructure the company and, therefore, has worked together with Cyril Amarkand Mangaldas, a law firm specialized in this type of situation.
According to information also coming from the company, the freezing of withdrawals, negotiations and deposits on the network are due to the indirect effects of the moderate prices of cryptos.
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