‘Invested all my family’s lifetime savings’: Users panic as Vauld suspends crypto withdrawals

“I have 25 bitcoins in Fuld. I invested all my family’s life savings,” John Mayer, 37, a Fuld user in the US told Indianexpress.com during a conversation on a social networking site. Mayer is among many investors who are now desperately seeking relief after Vauld, a popular crypto lending platform, suspended withdrawals and deposits.

The company blamed the decision on volatile market conditions. With this, Fuld joins the growing list of decentralized finance (DeFi) companies such as percentage grid and Voyager Digital who have suspended trading, making it difficult for hundreds of thousands of investors to liquidate their crypto assets.

According to Meyer, he had BTC as a fixed deposit. Tried pulling it off a few times but the app wouldn’t let it. “After calling support, I was told it was a bug and it would be fixed soon. I asked them to manually cancel it and they said they can’t. I have 3 days left. After three days of saving everything. I feel like the cop in the cinema who retires tomorrow and gets shot on his last day “. The same sentiment is shared by other investors who are suddenly unable to access their money.

“How are we supposed to buy or sell our cryptocurrency during this time if most exchanges are stopping withdrawals and deposits? Are we supposed to put in a little cash, buy some cryptocurrency and immediately move it to cold storage before another exchange pauses operations” And freeze our cryptocurrency? This is starting to get ridiculous,” Mike, another Fuld user of Indianexpress.com told Indianexpress.com.

Fuld allowed users to earn a fixed interest on their cryptocurrency by simply depositing their money. Interest was calculated daily, and users were able to payout weekly. Earlier, they could withdraw their money instantly. But the suspension of withdrawal services created panic among users who invested their savings, in pursuit of quick profits.

One Fuld user said on the condition of anonymity, “I have $15,000 in percentage and $181,000 in fold. I thought we would get a percentage of our coins. But we won’t know for months what will happen. One thing is for sure, there will be a lot of Emotional pain and prognosis.”

According to the company, the decision to suspend withdrawals comes after users withdrew $197.7 million over the past three weeks that have seen cryptocurrency prices plummet since June 12, 2022.

Fuld said it has hired financial and legal advisors to analyze the options, including possible restructuring. It is worth noting that in July 2021 the company raised $25 million led by Peter Thiel who founded Valar Ventures along with Pantera Capital and Coinbase.

Some like Mayer are appealing to Coinbase for a bailout, as the exchange is one of the investors in Fuld. “At this point, all we hope is that someone will buy it so we can get our money back. But it’s a long shot. Will Coinbase do anything?” he asked.

Meanwhile, Fuld announced that there It could be a solution like Nexo, The digital finance lender is looking to take over the company. “I understand that many of our customers are concerned about your money. We work tirelessly to ensure that your money is protected. To that end, we have signed a guiding term sheet with Nexo to acquire up to 100% of Fuld,” Darshan Bateja said in a statement Tuesday.

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