Coinbase-backed Vauld paused withdrawals just after announcing that it had no exposure to the "crypto contagion" and was sufficiently liquid.
Due to turbulent market conditions and the impact on critical business partners, Vauld announced on July 4 that it would immediately cease withdrawals, trading, and deposits on the platform.
The statement also stated that consumers had withdrawn $197.7 million since June 12 as a result of growing concerns about CeFi lenders, the same day Celsius announced similar moves to "stabilize liquidity and operations."
At this time, it's unclear whether Vauld has bad debts and is in default, or if it has margin calls that it can't meet.
Vauld stated that it had appointed a team of experts to investigate the prospect of restructuring the company in order to preserve the interests of stakeholders.
"In addition, we have retained Kroll Pte Limited as our financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as our legal consultants in India and Singapore, respectively."
Vauld co-founder Darshan Bathija's comment on the company's Twitter account emphasized the company's intention to find "the best answer for our clients."