Crypto Lender Vauld Seeks to End Nexo's Purchase Agreement After Rejecting Revised Offer

Vauld believes that the latest acquisition proposal by its fellow lender "would not be in the best interests" of its creditors.

AccessTimeIconJan 5, 2023 at 4:12 p.m. UTC
Updated May 9, 2023 at 4:05 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

  • How NEAR Enables Multichain Access From One Account
    00:56
    How NEAR Enables Multichain Access From One Account
  • Why the NEAR foundation Chose Eigenlayer as a Security Partner
    00:54
    Why the NEAR foundation Chose Eigenlayer as a Security Partner
  • Judge Kaplan Had 'No Love' for Sam Bankman-Fried, Legal Expert Says
    07:08
    Judge Kaplan Had 'No Love' for Sam Bankman-Fried, Legal Expert Says
  • How Bitcoin and Ether's Options Contracts Combined Expiry Could Spike Volatility
    01:11
    How Bitcoin and Ether's Options Contracts Combined Expiry Could Spike Volatility
  • 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).




    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


    Read more about