Billions of dollars in value have been wiped out of the cryptocurrency market over the past few weeks. Industry companies are feeling the pain. Lending and trading firms are facing liquidity crunch and many firms have announced layoffs.
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Crypto lender Wald on Monday halted all withdrawals, trading and deposits on its platform and is exploring possible restructuring options, the company said.
Wald CEO Darshan Bathija said in a blog post on Monday that the company is facing “financial challenges” due to “volatile market conditions”, the financial difficulties of our major trading partners that have inevitably impacted us, and the current Market environment” which caused customers to withdraw more than $197.7 million from the platform since June 12.
The Singapore-based company said it is working with its financial and legal advisors to “explore and analyze all possible options, including possible restructuring options, that will best protect the interests of Wald’s stakeholders.”
CEO Bathija said the company “continues to operate as usual despite volatile market conditions.” In a June 16 blog post, Bathija said that withdrawals were being “processed as usual and will remain so in the future.”
But Vault has turned out to be the latest victim of the crypto price crash this year. Bitcoin had its worst quarterly performance since 2011 in the second quarter. Billions of dollars were wiped out of the value of the cryptocurrency market in a span of three months.
market crash Exposed flaws in many cryptocurrency projects and business models, In May, the algorithmic stablecoin TeraUSD Falling down his sister Token Luna, Meanwhile, major cryptocurrency hedge funds Three Arrows Capital fell into liquidation After defaulting on a loan of more than $660 million from Voyager Digital.
Crypto lending firms such as Wald have faced liquidity issues. Celsius stopped withdrawals for customers last month Citing “extreme market conditions”.
Wald said it is in “discussions with potential investors” in the company.
The company said it has appointed Kroll Pte Ltd as its financial advisor, along with Cyril Amarchand Mangaldas and Raja & Tan Singapore LLP as its legal advisors in India and Singapore, respectively.