Singapore-based cryptocurrency lender Wald has suspended all deposits, trading and withdrawals from its platform as it considers restructuring options. Since June 12, when the crypto market crash began to intensify, Wald has seen withdrawals of nearly $198 million. The next day, cryptocurrency lender Celsius halted withdrawals on its platform.
vault for reorganization
According to a blog post published on Monday, the company is looking at possible restructuring possibilities to deal with the problems it is facing.
CEO Darshan Bathija noted that the business has experienced significant customer withdrawals totaling $198 million since June 12. TeraUSD’s collapse, Celsius’ withdrawal freeze, and Three Arrows Capital’s loan default, as well as financial difficulties from trading partners, have made things difficult. As for Wald, he noted.
“As such, we have recognized that it would be in the best interest of the stakeholders to take immediate action under the circumstances,” Bathija said.
In its most recent fundraising round, which was led by Peter Thiel’s Weller Ventures, Wald raised $25 million in July 2021. Robert Leshner, CEO of Compound Labs, is one of the company’s investors, along with Pantera Capital and Coinbase Ventures.
According to the blog, Wald has selected Kroll’s Asia Pacific Consulting Division as its financial advisor to investigate potential restructuring possibilities. Additionally, it has retained the legal counsel of Raja and Tan in Singapore and Cyril Amarchand Mangaldas in India.
About two weeks ago, after announcing plans to slash CEO remuneration by 50%, Wald issued a dire warning. In addition, Wald said last month that 30% of its workforce, most of which were based in India, would be laid off. Since Celsius was the first bitcoin company to do so, an increasing number of companies have stopped allowing activity on their platform, leaving customers worrying about their money.