CoinLoan suspends withdrawals

The Estonian crypto exchange CoinLoan announced they were immediately suspending all operations, including withdrawals. The action came after CoinLoan was declared insolvent by an Estonian court, which mandated they suspend activities pending permission from the court.

Protos speculated that the suspension could be related to Vauld, an exchange that collapsed last July. Vauld is rumored to have tens of millions of assets on CoinLoan.

The same day as Vauld's collapse, CoinLoan implemented a withdrawal limit of $5,000/day.

India freezes assets of FlipVolt, Vauld's Indian exchange

India's Enforcement Directorate froze $46.5 million of assets belonging to FlipVolt, the Indian branch of the Vauld cryptocurrency exchange. Vauld had previously filed for protection from creditors — a process in Singapore that is similar to Chapter 11 bankruptcy in the U.S. — on July 8, only four days after suspending withdrawals. Vauld subsequently announced a shortfall of around $70 million due to the Terra collapse and other factors, and reportedly owes creditors $363 million.

According to India's ED, 23 entities deposited Rs 370 crore (~$46.5 million) into FlipVolt, which the ED says were the proceeds of criminal activity. FlipVolt had "very lax KYC norms, no EDD [enhanced due diligence] mechanism, no check on the source of funds of the depositors, no mechanism of raising STRs [suspicious transaction reports], etc" and reportedly enabled the entities to launder the proceeds of crimes via the exchange.

Vauld is short around $70 million

Crypto lending firm Vauld, which suspended withdrawals and announced they were considering restructuring on July 4, have disclosed to their creditors a shortfall of around $70 million. They explained this was due to mark-to-market losses relating to the declining pricess of Bitcoin, Ether, and Polygon, as well as exposure to the now-collapsed Terra stablecoin UST. They also attributed some of the shortfall to longterm loans that can't be called back for another 3–11 months.

Several weeks prior, Vauld had cut 30% of staff, slashed executive salaries, and began various other cost-cutting measures.

Rival firm Nexo has said it is considering acquiring Vauld, though some have expressed skepticism that Nexo is in a position to afford such an acquisition.

Vauld seeks protection against creditors

Cryptocurrency exchange Vauld, who suspended withdrawals on July 4, filed for a moratorium against creditors in Singapore, a process that's conceptually similar to Chapter 11 bankruptcy proceedings in the U.S.

In late June, the exchange laid off 30% of staff and took other measures to cut costs. They later disclosed they were short $70 million, partly from exposure to the Terra ecosystem which collapsed in May.

Crypto lender Vauld suspends withdrawals, considers restructuring

Vauld, a major cryptocurrency lender backed by the likes of Coinbase and Peter Thiel, announced they have suspended withdrawals, trading, and deposits due to the crypto market downturn, "financial difficulties of our key business partners", and a recent bank run of customer withdrawals approaching $200 million.

Vauld, which is based in Singapore, also announced that they would be bringing on financial and legal advisors to "explore and analyse all possible options, including potential restructuring options".

Vauld lays off 30% of workforce and slashes executive pay

The Peter Thiel- and Coinbase-backed Vauld cryptocurrency exchange laid off 30% of its 100–200 employees, reportedly due to falling prices, low trading volumes, and tax concerns. They also halved executive salaries and drew back on their marketing expenses and vendor contracts.

Almost a year earlier, in June 2021, Vauld raised $25 million in a Series A round led by Peter Thiel's Valar Ventures, which was also joined by Coinbase and Pantera Capital.

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