Crypto lender Vauld abandons proposed acquisition deal by Nexo

Key takeaways:

  • Vauld stated Nexo had not responded to due diligence requests for a solvency assessment that would provide its creditors with assurance
  • Since the beginning of July, the two parties had been in communication.

Troubled crypto lender Vauld has cancelled potential acquisition deal by Nexo after the two signed an initial agreement to explore the transaction.

Vauld stated in a Twitter private message that “we were previously looking into a possible acquisition by Nexo as part of the suggested restructuring plan.” “To put it very briefly, our conversations with Nexo have regrettably not resulted in anything,”

After six long months of discussion, the possible purchase has failed, according to a source with intimate knowledge of the situation and an email acquired by The Block. The conversations with Nexo have regrettably not resulted in anything, according to the email from Vauld founder and CEO Darshan Bathija to the company’s creditors, which was sent today.

Reasoning it’s decision,Vauld stated Nexo hadn’t responded to due diligence requests for a solvency assessment that would provide its creditors with assurance.  However, according to Nexo, the agreement is still ongoing.“Nexo has not given up on its attempt to save Vauld and help its creditors recover the maximum possible platform funds,” co-founder and managing partner Kalin Metodiev said in an email.

On December 5, Nexo announced through Twitter that it was discontinuing its products and services in the US. As a result, over 40% of Vauld customers in the US (measured by the value of their customer balances) will not be able to fully utilise any benefits earned under the Revised Nexo Proposal.

Nexo has not yet responded to our inquiries about how they would propose to handle claims made by Vauld’s US-based clients.

Vauld and its creditors also think Nexo didn’t disclose its financial situation openly enough during negotiations. Nexo has not responded to calls for a thorough investigation into them, which would have included an evaluation of Nexo’s solvency, or for any other measures that would be able to be agreed upon to give creditors more security in the case of Nexo’s bankruptcy.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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