Crypto lender Vauld faces debt plan deadline as takeover talks with Nexo in limbo

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(Bloomberg) — Acquisition talks between crypto lenders Nexo and Vauld have yet to result in an agreement, as Vauld sets a Jan. 20 deadline to present a restructuring plan to creditors.

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Talks with Nexo were unfortunately unsuccessful, Vauld wrote Monday in an email to creditors. Nexo said it submitted a revised acquisition proposal to Vauld on Dec. 2. In a letter to Vauld’s creditors, he cited challenges during the months of talks, including defamation and the spreading of false information on social media.

We remain committed to providing creditors with the most favorable path to recovery, Nexo wrote. Nexo is committed to continuing to work for the benefit of creditors and supporting the development of the blockchain ecosystem.

Vauld and Nexo began talks on a deal in July after Singapore-based Vauld froze withdrawals and hired advisers to explore a possible restructuring. Crypto lending has been devastated this year amid the collapse of entities such as hedge fund Three Arrows Capital and the FTX/Alameda empire. Celsius Network Ltd., Voyager Digital Ltd. and BlockFi are among the companies that have filed for bankruptcy.

One of the stumbling blocks to a deal is Nexos’ announcement on Dec. 5 that it is phasing out the service in the United States. Vauld said more than 40% of its US customers would not have full access to the benefits of the acquisition and Nexo did not respond to questions about the issue.

–With help from Joanna Ossinger.

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