A piece of very bad news is coming from the crypto industry, crypto platforms have started suspending withdrawals on their platform. Recently, a famous Singapore-headquartered crypto platform Vauld suspended crypto withdrawals, trading, and deposits on their platform.
Vauld has officially announced the suspension of crypto withdrawals, trading, and deposits on its official blog.
Before Vauld Voyager Digital and crypto lender Celsius Network LLC also suspended trading and withdrawals. Crypto platform Babel Finance has also halted the withdrawals.
Reason Behind Vauld’s Crypto Withdrawal Suspension Decision
Darshan Bhatija CEO of Vauld said they had frozen its operations after users pulled nearly $200 million over the last three weeks. They have decided to suspend withdrawals after facing unusual liquidity pressures. So they restricted their users from withdrawing their funds from their platform.
Here Are the Some Steps Taken By Vauld
According to sources Vauld said they have hired a financial and legal advisor to analyze options for the potential restructuring of the platform properly. Vauld has hired Kroll as a financial adviser, and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisers in India and Singapore, respectively. In July 2021 Vauld raised $25 million from Valar Ventures along with Pantera Capital and Coinbase.
Why are the Prices of Cryptocurrencies Falling Sharply?
There are many reasons behind the declining prices of cryptocurrencies. One main reason behind this is the US Federal Reserve raising policy interest rates to control the inflation rate. Another big reason behind this sharp fall is the crash of TerraUSD and its sister cryptocurrencies LUNA. In this crypto crash, more than $40 billion of investors has wiped out. After this crypto crash, other altcoins and Bitcoin have lost more than 50% of their value.