Potential acquisition of Rival Vauld by Crypto Lender Nexo canceled

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Crypto lender Nexos’ potential acquisition of rival Vauld has been scrapped around five months after the two signed an initial agreement to explore the deal and less than a month before the Singapore-based target was due to come up with a plan of restructuring.

We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan, Vauld said in a private message on Twitter. To sum up very briefly, our discussions with Nexo have unfortunately not been successful.

Vauld suspended all withdrawals, trades and deposits on its platform as it considered restructuring options, CoinDesk reported in July. The company filed for creditor protection in Singapore earlier the same month and has until January 20 to work on a restructuring plan. In June, the company announced that it would lay off 30% of its staff.

According to a July 8 affidavit, the company owed $402 million to its creditors, with 90% of that debt coming from deposits from retail investors. A month after filing for creditor protection, Indian authorities froze assets worth 3.7 billion rupees ($46.4 million).

In explaining the end of the transaction, Vauld said Nexo failed to respond to due diligence requests for a credit valuation that would provide assurance to its creditors. He also pointed to Nexo’s Dec. 5 announcement that it was phasing out service in the United States, possibly leaving Vauld customers in the country without a way to have their complaints handled. A third point was that the proposal did not offer Vauld’s creditors an early exit option, which she said was vital to a successful restructuring.

Nexo had not responded to a request for comment at the time of publication.

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