Crypto lender Vauld, which is backed by both Coinbase and investor Peter Thiel, has suspended withdrawals, citing the crisis on the digital asset market, the Financial Times reported Monday (July 4).
Vauld had previously offered clients annualized returns of up to 40% to lend out their crypto tokens. On Monday, it said clients had pulled nearly $200 million from the Vauld platform, and with recent weeks’ high-profile failures, the company said that it was looking at several options — including restructuring.
However, Vauld is not the only company that has been hit by a wave of consequences from the floundering market and falling status of digital token lending.
Several companies have been feeling the effects since the Luna coin collapsed in May, and other companies, like BlockFi, Celsius and others, have also taken the path of shutting down withdrawals. Meanwhile, crypto hedge fund Three Arrows Capital has failed and shut down with other parties.
Vauld said recently it didn’t have any exposure to Celsius or Three Arrows, and said it was “liquid despite market conditions.”
That said, the company admitted it has been “facing challenges” due to what it said was a combination of things, including “volatile market conditions, the financial difficulties of our key business partners inevitably affecting us and the current market climate.”
