New Cryptocurrency Platform Freezes Withdrawals

Cryptocurrency trading platform Vauld has announced a freeze on withdrawals, the latest episode in recent troubles in the industry.

Problems are piling up in the cryptocurrency sphere. Vaud, a Singapore-based virtual currency lending and trading platform, announced on Monday the freezing of withdrawals, barely three days after its Canadian competitor Voyager.

197.7 million

of dollars

Vauld clients have withdrawn nearly $198 million since June 12.

The firm’s boss, Darshan Bathija, said he was having financial problems after its clients have withdrawn $197.7 million since June 12. The site cointelegraph notes that the reversal of the company’s fortunes was very rapid, when in May it boasted of having $1 billion under management.

Vauld customers have been panicked after the recent unrest in the sectorsuch as the collapse of the stablecoin TerraUSD (which was supposed to be pegged to the dollar), the freezing of transactions of the decentralized finance platform Celsius Network and the liquidation of the hedge fund Three Arrows Capital.

Vauld said on Monday that he had been affected by his financial partners, without naming names, however. The company has also indicated that it is seeking a solution with potential investors, as did, before it, the virtual currency lending firm FTX, acquired by its colleague BlockFi.

Last Friday, the platform Voyager has also frozen withdrawals due to the default of payment of a loan of 670 million dollars by the hedge funds.

Cryptocurrencies in free fall

The general fall in cryptocurrencies, particularly at the end of the first half of the year, also weighed on investor sentiment. Bitcoin has lost almost half of its value in just two months, and fell below $20,000 from $46,000 at the start of May.

UOS Virtual Currencycreated by the company Ultra and supported by video game creator Ubisoft, only worth $0.25 while at the end of 2021, it was displayed at 1.72 dollars, causing heavy losses among individuals who bet on it.



Tuesday, during the meeting of its supervisory board, the central bank should stress the urgent need for harmonization of rules in the various countries of the region, according to the daily “Financial Times”.

The ECB worries

Faced with the debacle in the world of virtual currencies, the European Central Bank called for an acceleration of regulation. The European Commission announced last week a package of measures to regulate the industry.

But there are fears within the central bank that nationally imposed laws for banks and cryptocurrency companies could create a messy patchwork before European rules come into effect in 18 months.

Tuesday, during the meeting of its supervisory board, the central bank should stress the urgent need for harmonization of rules in the various countries of the region, according to the daily “Financial Times”.

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