Crypto Lender Vauld Seeks to Exit Nexo Acquisition Bid

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On Monday, struggling British crypto lender Nexo told Decrypt that its acquisition of Singapore-based rival Vauld was not yet complete after emails surfaced indicating that Vauld was seeking to back out of the acquisition for a while. the exclusivity offer period.

“Nexo has not given up on its attempt to save Vauld and help its creditors recover as much platform funds as possible,” Kalin Metodiev, managing partner at Nexo, told Decrypt.

The company, however, is on the rocks with Singapore-based rival Vauld over an acquisition, jeopardizing a rescue plan for the company that is more than $400m short after coming under fire from the collapse. from FTX and stablecoin Terra-Luna earlier. This year.

Vauld CEO Darshan Bathija said in a statement on Monday that “our discussions with Nexo have unfortunately been unsuccessful” over the past six months.

“We have since sought a mutual agreement with Nexo to terminate existing exclusivity agreements and we continue to actively engage with shortlisted fund managers to develop a workable strategy that would best serve the interests of creditors,” Bathija said.

This summer, Vauld suspended customer withdrawals on its platform amid a liquidity crunch. The crypto lender has faced a range of issues this year ranging from the dramatic downfall of algorithmic stablecoin Terra-Luna and the collapse of FTX, and went to court in Singapore to file the equivalent of the chapter 11 bankruptcy.

“Nexo’s revised proposal does not allow for a debt takeover bid through a reverse Dutch auction (the ‘RDA’) which would give creditors an early exit option. We had explained to them that on the basis of our engagement with creditors, an exit option is critical to the success of any proposed restructuring.Unfortunately, the benefits offered under Nexo’s revised proposal, such as early withdrawal of credit, are set at a threshold that we believe is generally unachievable by the majority of creditors,” Vauld said.

Earlier this month, embattled British crypto lender Nexo shut down its US operations, citing a “regulatory lack of clarity” in America and a “standoff” with Washington DC regulators who claim the company was providing remunerated accounts without registering them as securities.

The company later banned users in eight states from using paid accounts and ended its operations in the United States.

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