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Troubled Crypto Lender Vauld Calls Off Acquisition by Nexo

by Arnab Shome
  • Nexo, on the contrary, is still not calling it an end to the deal.
  • Vauld halted activities in July and is undergoing restructuring.
Vauld
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Singapore-based troubled crypto lender, Vauld has confirmed the termination of the talks for acquisition by rival Nexo for failure in responding to due diligence requests for a solvency assessment that would assure creditors.

"We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan," Vauld told crypto-focused publication Coindesk in a private Twitter message. "To provide a very brief summary, our discussions with Nexo have unfortunately not come to fruition."

Nexo Acquisition of Vauld Dissolves Amid Reporting Lapses

Further, Nexo's decision to phase out services in the United States would have jeopardized the fate of Vauld customers with their claims if the acquisition deal had materialized. Additionally, Nexo reportedly failed to offer Vauld customers an exit option which was crucial for restructuring.

The deal ended only five months after Nexo and Vauld signed an initial agreement to explore the possibility of the acquisition. Though Vauld did not highlight the impact of the deal termination on its ongoing restructuring, it fell through less than a month from its deadline to come up with a restructuring plan.

Does Nexo Still Want to Acquire Vauld?

However, Nexo is not quitting its attempts at this acquisition as of yet. "Nexo has not given up on its attempt to save Vauld and help its creditors recover the maximum possible platform funds," Nexo's Co-Founder and Managing Partner, Kalin Metodiev, wrote in an email sent to the crypto publication.

The two companies reportedly did not mutually agree to end the deal, which is necessary for a formal termination.

The troubles of Vauld were exposed when the platform suspended all activities, including withdrawals, trading, and deposits, in early July, citing financial challenges and looking for restructuring options. Later, the company filed for a moratorium order for protection against creditors in a Singapore court and received one for three months.

Check out the recent London Summit session on the question "Will Crypto Fizzle Out or Here to Stay?"

Founded in 2018, Vauld claimed to offer the highest interest rates on major cryptocurrency deposits. It offered borrowing against cryptocurrencies and several other trading-related services.

According to a court filing in July, Vauld owed $402 million to its creditors, and 90 percent of that debt originated from retail investors. Furthermore, the company's troubles continued as the Indian authorities froze its assets worth about $46.4 million only a month after filing for creditor protection.

Singapore-based troubled crypto lender, Vauld has confirmed the termination of the talks for acquisition by rival Nexo for failure in responding to due diligence requests for a solvency assessment that would assure creditors.

"We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan," Vauld told crypto-focused publication Coindesk in a private Twitter message. "To provide a very brief summary, our discussions with Nexo have unfortunately not come to fruition."

Nexo Acquisition of Vauld Dissolves Amid Reporting Lapses

Further, Nexo's decision to phase out services in the United States would have jeopardized the fate of Vauld customers with their claims if the acquisition deal had materialized. Additionally, Nexo reportedly failed to offer Vauld customers an exit option which was crucial for restructuring.

The deal ended only five months after Nexo and Vauld signed an initial agreement to explore the possibility of the acquisition. Though Vauld did not highlight the impact of the deal termination on its ongoing restructuring, it fell through less than a month from its deadline to come up with a restructuring plan.

Does Nexo Still Want to Acquire Vauld?

However, Nexo is not quitting its attempts at this acquisition as of yet. "Nexo has not given up on its attempt to save Vauld and help its creditors recover the maximum possible platform funds," Nexo's Co-Founder and Managing Partner, Kalin Metodiev, wrote in an email sent to the crypto publication.

The two companies reportedly did not mutually agree to end the deal, which is necessary for a formal termination.

The troubles of Vauld were exposed when the platform suspended all activities, including withdrawals, trading, and deposits, in early July, citing financial challenges and looking for restructuring options. Later, the company filed for a moratorium order for protection against creditors in a Singapore court and received one for three months.

Check out the recent London Summit session on the question "Will Crypto Fizzle Out or Here to Stay?"

Founded in 2018, Vauld claimed to offer the highest interest rates on major cryptocurrency deposits. It offered borrowing against cryptocurrencies and several other trading-related services.

According to a court filing in July, Vauld owed $402 million to its creditors, and 90 percent of that debt originated from retail investors. Furthermore, the company's troubles continued as the Indian authorities froze its assets worth about $46.4 million only a month after filing for creditor protection.

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