The turbulent times in the cryptocurrency market raised doubts over safety of customer funds on exchanges. In the recent times, the crash of Terra network had a ripple effect on all players in the market. In these circumstances, doubts are being raised over Vauld fund safety.
What Caused Vauld To Suspend Withdrawals, Trading & Deposits?
Earlier on Monday, cryptocurrency exchange Vauld said it had suspended all withdrawals, trading and deposits on its platform with immediate effect. The Singapore-based company added that it was exploring restructuring options with its financial and legal advisors.
Financial challenges in the crypto market on various fronts caused this move from the Vauld management. However, this is believed to be more of a precautionary move than running out of funds.
Neel, a crypto influencer, feels this move from Vauld could be a precautionary measure to avoid ‘panic withdrawals’.
“This can be a precautionary measure to avoid bigger problems that can happen by panicked withdrawals and give them breathing room to come up with a solution.”