Coinbase-Backed Lender Suspends Withdrawals, Looking To Reform

A Coinbase-backed lender suspended withdrawals as it is looking to reform as the market downturn deepens so let’s read more in today’s Coinbase news.

The coinbase-backed crypto lender to be ceasing withdrawals and transactions is  Vauld. The company saw customer withdrawals in excess of $197 million and this seems to have happened right after the decline of the market triggered by the crash of Terra. Vauld engaged the services of financial advisors in India and Singapore while being fully committed to working out and exploring other options like potential restructuring that will best protect the interests of the stakeholders.

In the meantime, the company suspended withdrawals, trading, and deposits and the platform wrote:

“In the meantime, 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.”

Vauld is another string of lenders that chose to take action but the most notable name in the field is still Celsius Network which will resumes withdrawals while cutting staff by 150 people. Back in July 2021, the company raised $25 million in a funding round by Valar Ventures and also the participation from Coinbase Ventures, Pantera Capital, and more.

As earlier reported, Vauld is a lending platform based in Singapore which halted its operations due to financial difficulties amid volatile market conditions. The company announced it will suspend the deposits, trading, and withdrawals. The company is backed by leading venture capitals like Pantera Capital, Coinbase Ventures, and Valar Ventures.

The company hired advisory firm Kroll PTE Limited and legal companies like Cyril Amarchand Mangaldas and Rajah and Tann Singapore LLP to explore other options and help solve the crisis. Vauld stated that the company faced withdrawals of $107 million since June this year and with the Terra Implosion and Celsius Network financial woes, there were strong enough reasons to be hit with financial difficulties.

Also, The Coinbase NFT released more features for its small userbase since its public beta launch and it added an NFT Bulk Manage feature as well as a Liked tab with the ability to edit list prices, insights page, and the notification hub. It also added rarity filters, a “following” feed, and the ability for the users to connect up to 10 wallets to a single NFT account among other things. The traders haven’t really materialized despite the platform holding off any Coinbase fee for a limited time.