The list of crypto lenders and crypto trading platforms that have decided to lock out their customers from their funds is growing daily. The latest to do so is Vauld, which halted all the withdrawals, deposits, and trading on Monday.
The Singapore-based lender said the decision was prompted by “financial challenges” Vauld faced in recent weeks due to the crypto market crash. The company employed said it employed “financial and legal advisors” to help it “reach a solution that will best protect the interests of Vauld’s stakeholders.”
“We’ve strived to be an excellent crypto lending platform,” said Vauld CEO Darshan Bathija. “This has been our goal from day one. We’re committed to finding the best resolution for our customers.”
Vauld, backed by crypto exchange Coinbase and PayPal co-founder Peter Thiel, was founded in 2018. It attracted customers thanks to its high rates which included 12.68 percent annual yields on several stablecoins and 6.7 percent annual yields on Bitcoin and Ethereum. The company spent the last couple of weeks reassuring its customers and claimed it is business as usual as other crypto lenders like Celsius Networks drowned in problems.
However, it appears that Vauld wasn’t immune to the effects of “crypto winter.” They only managed to hide them better than the competition.