Vauld CEO Darshan Bathija said in a blog post that it was facing "financial challenges" due to: "the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7 million since June 12."
The crypto industry has been shaken by a series of collapses in recent months including the failure of so-called stablecoin TerraUSD, large U.S.-based lender Celsius network pausing withdrawals and Singapore-based crypto hedge fund Three Arrows Capital entering into liquidation.
Crypto lenders have been particularly affected and crypto exchange FTX has signed a deal with an option to buy embattled crypto lender BlockFi for up to $240 million, the company said last week.
Bitcoin, the world's largest cryptocurrency, has lost around half its value since early May, and was last trading at just under $20,000.
Vauld said it had appointed legal and financial advisers, was in discussions with potential investors, and would also apply to the Singapore courts for a moratorium that would have any proceedings against it halted to give it time to carry out a restructuring.
Vauld did not immediately respond to an emailed request for comment.
(Reporting by Tom Westbrook in Singapore and Alun John in Hong Kong, Editing by Louise Heavens)
