In a statement on Monday, June 4, the company said that cryptocurrency exchange Fold has suspended its operations, including withdrawals, trading and deposits on its platforms. fold He said this was primarily due to the growing “financial challenges”, despite her best efforts. In the company’s announcement on its website, Fuld said the suspension was effective immediately.
In the statement available on his website, CEO and Co-Founder Darshan Bateja wrote, “Fold’s management wishes to inform us that we are facing financial challenges despite our best efforts. This is due to a combination of circumstances such as volatile market conditions, and the financial difficulties of our major trading partners that It inevitably affects us, and the current market climate that has resulted in a significant amount of customer withdrawals of over $197.7 million since June 12, 2022…”
This was the time when the cryptocurrency market faced an unpredictable decline due to the collapse of TerraUSD (UST), which was left behind by the Celsius network that temporarily halted withdrawals, and Three Arrows Capital defaulted on its loans.
Batega said that Fuld is currently with potential investors in the Fuld group of companies. “It is our intention to apply to the Singapore courts for a moratorium, i.e. to suspend the initiation or continuation of any proceedings against the relevant companies so as to give us an outlet to carry out the proposed restructuring,” his statement read.
“In the meantime, we have made the difficult decision to suspend all withdrawals, trading and deposits on the Fold platform with immediate effect. We believe this will help facilitate our exploration of the appropriateness of potential restructuring options, along with our financial and legal advisors,” Batega said in the statement.
“We seek to understand the clients of the Fold platform that we will not be in a position to process any new or other orders or instructions in this regard. He added that specific arrangements for client deposits will be made as necessary for certain clients to meet margin requests in relation to secured loans.
The Coinbase-backed platform said it has hired the services of Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal advisors in India And Singapore respectively to deal with the crisis. “We are confident that, with the advice of our financial and legal advisors, we will be able to arrive at a solution that best protects the interests of Fuld’s clients and stakeholders,” she said.
In June, Fuld announced that it had commanded 30 percent of its workforce, with most of the employees from India. The company, which raised $27 million as of July 2021, said it had cut its marketing expenses while also slashing executive compensation by 50 percent, due to the economic slowdown.