- Cryptocurrency lending and trading platform Wald announced on Monday that it has halted customer withdrawals due to serious financial challenges.
- The Singapore-based startup also said it had hired financial and legal advisors to investigate a possible restructuring.
- Wald, which had over 1 million clients as of May 2022 and $1 billion in assets under management, is only the latest in a series of crypto firms that have succumbed to bear market pressure.
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Crypto lending and trading platform Wold has suspended client withdrawals and hired financial and legal advisors to help it evaluate possible paths amid volatility in the crypto market. The firm has stated that it is Citing “challenges to face” market conditions and difficulties faced by its major trading partners.
Vault suspends customer withdrawals
Wald has become the latest in a series of crypto firms to halt customer withdrawals and consider restructuring due to dire market conditions.
We are facing challenges in spite of our best efforts. This is due to a combination of circumstances such as volatile market conditions, the financial difficulties of our major trading partners inevitably affecting us and the current market environment.
— Wald (@VauldOfficial) 4 July 2022
Singapore-based crypto lending and trading startup announced The move in Monday’s blog post cited “financial challenges” stemming from a combination of factors, including volatile market conditions and financial contagion resulting from the collapse of the Terra ecosystem in May. “We have made the difficult decision to suspend all withdrawals, trading and deposits on the Wold platform with immediate effect,” the firm’s CEO Darshan Bathija wrote in a blog post.
The decision to stop the withdrawals comes weeks after the company published a post to reassure its customers that it was liquid and operating as usual. “Vault continues to operate as usual despite volatile market conditions,” it wrote. a June 16 statementDenying any exposure to bankrupt crypto lender Celsius and bankrupt crypto hedge fund Three Arrows Capital.
Despite Wald’s lack of direct contact with the troubled entities, the firm has failed to avoid a financial crisis sweeping through the entire crypto market. As of today’s announcement, the platform endured a bank run in which customers withdrew more than $197.7 million in less than a month, significantly hindering its ability to operate normally.
As a result, Bathija said today that the firm has hired financial and legal advisors to help it explore possible avenues ahead, including potential restructuring options that would best protect the interests of its stakeholders. “We are currently in discussions with potential investors in the Wald Group of companies,” he said, adding that he was confident that Wald would find a satisfactory solution for the firm’s clients and stakeholders.
Wald, which has a majority of its team in India, had more than 1 million customers and more than $1 billion in assets under management as of May 2022. In July 2021, it raised $25 million in a Series A funding round led by Peter Thiel’s venture capital firm. With participation from other high-profile investment funds including Weller Ventures, Pantera Capital, Coinbase Ventures and CMT Digital.
Wald is just one of the many crypto firms facing serious financial problems due to the market crash in the past two months. Since Terra’s $40 billion Terra transplant, several major crypto lenders and hedge funds, including Celsius, CoinFlex, Babel Finance, BlockFi, Three Arrows Capital and Hashed, have faced serious liquidity and solvency issues. Like Wold, crypto lenders have opted for measures such as withdrawal freezes and restructuring plans, while the once-crypto hedge fund giant Three Arrows seems to be ending as a business. It filed for Chapter 15 bankruptcy in a New York court on Friday.
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.