Crypto lender Nexo to acquire Vauld
Nexo, a London-based cryptocurrency lending firm, is set to acquire Vauld, the crypto platform that recently shut down operations citing “financial challenges”.
“I understand that many of our clients are concerned about your funds. We work tirelessly to ensure your finances are protected. We have signed an indicative term sheet with Nexo, to acquire up to 100% of Vauld,” Vauld CEO Darshan Bathija said in his tweet.
Completion of this transaction is pending due diligence – which both teams are working on. Bathija further stated that Vauld has been striving to deliver long-term value to all customers, and believes moving under the Nexo umbrella will go a long way towards achieving this.
Nexo, in a tweet had said, “In a consolidation effort aimed at improving the space, as well as strengthening our presence in Southeast Asia, we have entered into exclusive talks with Vauld for the acquisition company’s comprehensive Singapore-based company.”
It comes after Vauld suspended all withdrawals, transactions and deposits on the platform as the exchange was facing “financial challenges”. The platform said it was exploring and analyzing all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.
The company in a blog post announced that it was facing financial difficulties despite its best efforts. Bathija in the post wrote, “This is due to a combination of circumstances such as volatile market conditions, financial difficulties of our major trading partners which inevitably affect us and the current market climate.”
Vauld has recorded client withdrawals of over $197.7 million since June 12, 2022. The platform attributed the fall to the decline in the cryptocurrency market which was triggered by the collapse of the stablecoin UST of Terraform Lab, the Celsius network suspending withdrawals and Three Arrows Capital in default on their loans.
06 July 2022