The company issued a statement on Monday notifying customers that it has sought legal counsel to ‘explore and analyze all possible options, including potential restructuring options’

Cryptocurrency exchange Vauld on Monday announced to suspend all withdrawals, trading and deposits on its platform with immediate effect owing to ‘financial challenges’.

The crypto market crash, and several other high-profile platforms suspending services, have spooked investors who have pulled just under $200 million from Vauld since June 12.

The Singapore-based company issued a statement on Monday notifying customers that it has sought legal counsel to ‘explore and analyze all possible options, including potential restructuring options.’

We’ve strived to be an excellent crypto lending platform. This has been our goal from day one. We’re committed to finding the best resolution for our customers, it said.

Last month, Vauld stated that it would be laying off 30% of its staff, putting the anchors on hiring and halving executive compensation.

According to company CEO Darshan Bathija, the Vauld Group is currently in discussions with potential investors. It will apply to the Singapore courts for a moratorium to give it breathing space for the restructuring.

We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors, he added.

In furtherance of this, we have engaged the services of Kroll Pte Limited as our financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as our legal advisors in India and Singapore, respectively, said Bathija.

Vauld, which launched in 2018 offering digital asset trading, custody, and crypto credit, raised $25 million in a Series A funding round in 2021. Investors included Peter Thiel founded Valar Ventures, Pantera Capital, and Coinbase Ventures.

The suspension of services follows the likes of Voyager Digital, which did the same last week, blaming Three Arrows Capital for defaulting on its loans.

Major crypto lender Celsius suspended crypto withdrawals in June and has sourced advisors to prepare for restructuring.

The CoinLoan platform has also limited services and withdrawals in response to the market turmoil. On July 4, the company stated that a spike in withdrawals prompted it to impose a withdrawal limit of $5,000 per day.