Amid financial crisis, induced by one of the worst runs for cryptocurrencies ever, Singapore-based cryptocurrency exchange and lending platform Vauld has suspended withdrawl, deposit and trading orders on its platform.

In a statement, Co-founder and CEO Darshan Bathija said “The Vauld management wishes to inform that we are facing financial challenges despite our best efforts. This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7 m since 12 June 2022…”

The development comes as the cryptocurrency market continues to sail through a tough downturn, caused by the sudden collapse of the stablecoin TerraUSD. The fall of TerraUSD was also followed by Celsius Network halting all transactions, as well as Three Arrows capital defaulting on loans.

The CoinBase backed platform has employed the services of Kroll Pte Limited as financial advisors, and Cyril Amarchand Mangaldas, Rajah & Tann Singapore LLP for legal advisory, as the company plans to apply for Moratorium in Singapore courts. In the meantime, Bathija said, “we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect. We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors.”

During its functional days, Vauld claimed to provide customers with the market’s highest interest rates on cryptocurrency lending. The company offers 12.68% annual growth on stablecoins like USDC and BUSD and 6.7% on conventional Cryptos like Bitcoin and Ethereum. The company also allows users to borrow loans against their cryptocurrency tokens, of as much as 66.67% of token values, with “instant approvals”.

Decentralized finance platforms have been facing difficulties maintaining liquidity, as the cryptocurrency market continues to navigate through tough times. Vauld CEO Darshan Bathija had recently assured customers of its liquidity and independence from the situation of Celsius network. The platform also chopped off its workforce by 30% two weeks ago.

“We seek the understanding of customers of the Vauld platform that we will not be in a position to process any new or further requests or instructions in this regard. Specific arrangements will be made for customer deposits as may be necessary for certain customers to meet margin calls in connection with collateralised loans,” said Bathija while concluding the statement.