CEO Chengpang “CZ” Zhao of Binance slammed Vauld, a Singapore-based crypto exchange, and loan business, on Twitter.
CZ, in response to a report on Vauld’s suspension of withdrawals, warned against utilizing platforms that need VC backing. As far as he is concerned, they lack a solid business plan.
Because one of the firms financing Vauld is a rival of Binance (Coinbase), CZ’s jibe makes a lot of sense. Vauld is also backed by Valar Ventures, led by Peter Thiel, and Pantera Capital, which are both well-known investors.
David Schwartz, CEO of Ripple, also tweeted “RIP Vauld” in response to Vauld’s announcement.
Today, Vauld published a corporate statement announcing that its platform has been suspended due to market volatility, mentioning all withdrawals, trading, and deposits.
According to the site, the decrease in the crypto market was attributed to the collapse of Terra, Celsius’ suspension of withdrawals, and 3AC’s debt failure. Since June 12th, 2022, close to $200 million has been removed.
Last month, CEO Darshan Bathija issued a statement that is in sharp contrast to the suspension. According to a blog post by Bathija, the business has no exposure to Celsius or 3AC and is able to maintain liquidity despite the challenging market.
It was determined that Vauld’s primary account had a large number of transactions with 3AC, CEO Alex Svanevik disclosed. A month ago, Vauld revealed 3AC’s bankruptcy in a blog post.
The interactions with 3AC that Svanevik described occurred over a year ago and may not necessarily indicate exposure.
Centralized exchanges have been shutting down their services one after another, and Vauld is the latest to do so. With the bear market as an excuse, organizations like Three Arrow Capital and Celsius have also stopped operations. As a consequence, there are many people who are opposed to trading.
Lark Davis, a well-known cryptocurrency investor, and influencer urged his fans to avoid using centralized exchanges for their cryptocurrency holdings. In an interview with Satoshi Act Fund CEO Dennis Porter, he urged investors not to store any quantifiable cryptocurrency in exchanges.