Vault is facing difficulties due to many reasons. These include market volatility and financial difficulties of business partners.
- The exchange halted user transactions in June.
- It has suffered a big loss due to the fall in the crypto market
- Many firms in this segment are taking measures to reduce costs.
The Enforcement Directorate (ED) has blocked assets worth about $46 million of Singapore-based crypto exchange Vault. The ED said that these assets are in bank accounts, balances of payment gateways and wallets on the Flipvolt crypto exchange. In this case, raids were conducted on several premises associated with the firm.
In this regard, a press release issued by the ED said, “These are the proceeds of crime due to erroneous methods of lending. The cryptocurrency purchased from it was transferred to an unknown foreign crypto wallet address.” The ED said that the assets which have been withheld in India related to Vauld’s firm will be released only after giving complete information about the fund. Vault banned user transactions on its platform in June following a sharp drop in the stablecoin TerraUSD. Flipvolt has its unit in India. Earlier this month, the ED had frozen nearly $8 million in assets of crypto exchange WazirX.
Vault is facing difficulties due to many reasons. These include market volatility and financial difficulties of business partners. The firm had said that it is also considering options for restructuring. For this, along with hiring Kroll as a financial advisor, legal advisors have also been appointed by the firm Vault has also started talks with potential investors.
Earlier, crypto lending firm Celsius Network had banned the transactions of customers. The firm’s decision to ban the transactions of clients is being investigated by the regulators. Celsius had said that due to the poor condition of the crypto market, it is prohibiting withdrawal and transfer between accounts. The US-headquartered firm’s decision to freeze transactions is being probed by some regulators, including the Texas State Security Board. The US Securities and Exchange Commission (SEC) had also sought information from the firm in this regard. Many firms in the crypto segment are also taking measures to reduce costs.