Cryptocurrency lender Vauld rejected Nexo's revised acquisition proposal and is seeking to terminate the negotiations between the two firms, saying the deal "would not be in the best interests" of its creditors.

"We have sought a mutual agreement with Nexo to terminate the existing exclusivity arrangements, and we are continuing our active engagement with the shortlisted fund managers in developing a viable strategy that would best serve the creditors’ interests," Vauld said in a statement Thursday.

The two firms started talks in July after Vauld suspended all withdrawals, trading and deposits on its platform and filed for creditor protection in Singapore. It has until Jan. 20 to work on a restructuring plan. The talks looked to be over at the end of last year, when Vauld said the acquisition had been canceled. Nexo, however, responded that it wasn't calling off the deal and took the step of writing an open letter to Vauld's creditors.

Nexo, which is also a crypto lender, said it still wants to proceed with the acquisition.

"Mid-next week, Nexo will host a live AMA (ask-me-anything) session to address all outstanding questions about our proposal, and we are adamant about the fact that this is the offer that creates most value for Vauld’s customers," a Nexo spokesperson said in an email. "We will also be putting out another open letter on the topic to ensure transparency."

As of July 8 last year, Vauld owed $402 million to its creditors, 90% of which originated from individual retail investor deposits. A month after it filed for creditor protection, Indian authorities froze assets worth 3.7 billion rupees ($46.4 million).

See also: Galaxy Digital Abandons $1.2B Plan to Acquire Crypto Custody Firm BitGo