The Vauld supported by Coinbase stops payments because the crypto loan crisis intensifies

Vauld, a crypto loan supported by Coinbase and the investor Peter Thiel, has set the withdrawals and trading on its platform, since the credit crisis on the market for digital assets intensifies.

The company, which offered customers annual returns of up to 40 percent for lending their crypto tokens, said on Monday that customers had deducted almost $ 200 million from its platform in the past three weeks, as top-class failures by the industry.

It has appointed consultants to check all possible options, including restructuring, Vauld said in an explanation on Monday.

The decision of the group based in Singapore is to suspend reputation how a severe decline in prices for digital assets in recent months has seriously affected a once flourishing market for the loan of digital brands.

companies were hit by the aftershock of the collapse of the digital token Luna in May. Last month, the lenders Blockfi and Celsius said that they would have to stop the withdrawals, and the Hedge fund Three Arrows Capital - one of the largest investors in the market - failed and seduced other parties.

Vauld said on June 16 that it had no engagement in Celsius or Three Arrows Capital. "We remain liquid despite market conditions. In the past few days, all payments have been processed as usual and this will remain so in the future," it said.

But on Monday it found that the collapse of Three Arrows was a factor that had triggered a stream of customer withdrawals.

"Despite all efforts, we face challenges," said Vauld on Monday. "This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our most important business partners who inevitably affect us and the current market climate."

It has stopped Kroll as a financial advisor and Cyril Amarchand Mangaldas and Rajah & Tann Singapore as a legal advisor while weighed his options.

Vauld collected $ 25 million in a financing round a year ago. The participants included the risk capital arm of Coinbase, the crypto hedge fund Pastera Capital and Valar Ventures, a risk capital company co-established by Peter Thiel.

The failure of Three Arrows has added severe pain to the entire industry. According to the insolvency specialists who are commissioned to process their business, the group, which was liquidated last week, is expected to be faced with demands of a "significant" number of creditors.

Other crypto creditors were more direct exposed, with Voyager Digital claimed that Three Arrows had not managed to repay loans of $ 650 million. Blockfi also said that it suffered losses of $ 80 million in connection with Three Arrows.

In late Friday, Voyager also stopped the withdrawals, while the Rival Blockfi said on the same day that he had reached an agreement according to which the FTX trading platform would provide him with new funds in exchange for an option for the purchase of the crypto loan.

The crash of the crypto token Luna and its stable co-counter Terra in May-which were one of the most popular assets that were used in high-risk crypto bets, known as "staking"-has reinforced the pressure on the sector.