Cryptocurrency
Announced the cryptocurrency trading platform Fold Vault Suspend all withdrawals, trading and deposits on its website to explore potential restructuring options.
Fold CEO Darshan Bateja stated in a blog post on Monday that the company is facing financial challenges, as a result of volatile market conditions, the financial difficulties of its major trading partners that affect it significantly, as well as the current climate in the cryptocurrency market, which has prompted customers to withdraw more than 197.7 million dollars from the platform since June 12.
The company stated that it is working with its financial and legal advisors to explore and analyze all possible options, including potential restructuring options, that would protect the interests of shareholders of the platform.
Fuld’s move to halt withdrawals comes less than three weeks after CEO Bateja said that the company is continuing to operate as usual despite volatile crypto market conditions, and that the company’s future conditions are stable.
Fuld is the victim of the sharp declines in cryptocurrency prices this year, as Bitcoin recorded its worst quarterly performance since 2011 in the second quarter, and billions of dollars were erased from the value of the crypto market in the quarter.
The collapse of the cryptocurrency market revealed flaws in a number of cryptocurrency projects and business models, perhaps the most prominent of which is the collapse of a currency terraUSD The May stables that led to the collapse of the Luna sister token LUNA .
Meanwhile, the main hedge fund of the cryptocurrency market has been exposed Three Arrows Capital to liquidate after defaulting on a loan of more than 660 million dollars from Voyager Digital.