The users of the crypto lending platform Vauld will continue to earn interest on their fixed crypto deposits. This was confirmed by Vauld CEO Darshan Bathija, on the company’s official Telegram channel. In an FAQ posted, Bathija clarified all the doubts Vauld users had after the company suspended withdrawals and deposits citing the crypto market’s volatile conditions.
Vauld is a crypto lending platform that allows users to earn a fixed interest on their cryptos as soon as they deposit their funds. The interest was calculated daily, and users were able to make the payout weekly. Earlier, they could withdraw their funds immediately.
Vauld management in an earlier blog post said that it is facing financial challenges despite its best efforts. The crypto company said that the current market climate had led to a significant amount of customer withdrawals when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s Terra-Luna stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.
Bathija also announced that there could be a solution as Nexo, the lender in the digital finance space is looking to acquire the company. As there is no update from the company on this, many users on Telegram requested the co-founder to provide more information about the deal.
While Bathija did not give any clarity, but said, “We’re going to make more information available around the same shortly.”
On resuming withdrawal deposit options, he said that he can’t provide fixed timelines yet but is working to resume operations soon.
Meanwhile, Vauld has filed for a moratorium in Singapore. “This does not mean we intend to wind operations down but have requested the courts to give us time to complete efforts around an acquisition/raising capital,” Bathija said.
According to the company, the decision to suspend withdrawals comes after users pulled $197.7 million over the last three weeks which saw cryptocurrency prices plummeting since June 12, 2022. Vauld said it has hired financial and legal advisers to analyse options, including a potential restructuring. It is worth noting that in July 2021, the company raised $25 million led by Peter Thiel-founded Valar Ventures along with Pantera Capital and Coinbase.