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Crypto lender Vauld has joined the list of crypto lenders halting withdrawals for clients after it paused trading and deposits on its platform as it is exploring potential restructuring options, the company said. 

Vauld CEO Darshan Bathija said in a blog post on Monday that the company is facing “financial challenges” due to “volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate” which has led to customers withdrawing more than $197.7 million from the platform since June 12.

The Singapore-based company said it is collaborating with its financial and legal advisors to “explore and analyze all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.”

Vauld’s withdrawal stoppage came a few weeks after Bathija said the company “continues to operate as usual despite volatile market conditions.” In a June 16 blog post, Bathija said withdrawals were being “processed as usual and this will continue to be the case in the future.”

However, Vauld has become the latest victim of the cryptocurrency market bloodbath this year. Bitcoin, the largest crypto in the world by market value had its worst quarterly performance since 2011 in the second quarter. The total crypto market saw billions of dollars wiped off in the last few months, dragging down the market capitalization of all digital coins to $1 trillion from an all-time high of $3 trillion that it reached in November 2021. 

The market crash has caused damage to several crypto projects. For instance, the algorithmic stablecoin terraUSD collapsed taking down its sister token luna in May. Meanwhile, major cryptocurrency hedge fund Three Arrows Capital fell into liquidation after defaulting on a more than $660 million loan from Voyager Digital.

Crypto lending firms such as Vauld have faced liquidity issues. Celsius last month paused withdrawals for customers citing “extreme market conditions.”

Vauld said it is “in discussions with potential investors” in the company.

The firm said it has hired Kroll Pte Limited as its financial advisor, as well as Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as its legal advisors in India and Singapore respectively.