Nexo aims for acquire the troubled crypto lender Vauld just days after the latter halted client withdrawals so let’s read more in our latest cryptocurrency news.
Nexo announced that it signed an indicative term sheet with the Singaporean crypto exchange Vauld. Under the agreement, Nexo aims for the acquisition of 100% with a 60-day exploratory period that will see the company conduct a due diligence process that is related to the intended acquisition. Antoni Trenchev, the Managing Partner said:
“Our most important task now is verifying whether a Nexo-led overhaul can see the firm thrive again and whether it can be profitable within our business model and company culture.”
Pending a satisfactory outcome, Nexo aims to buy up to 100% of the company and reorganize the future operations to enhance its presence in Asia. The Vauld CEO Darshan Bathija said:
“Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions.”
Established in 2018, Vauld allows customers to purchase, borrow and lend crypto from one platform, and to date, the company raised $27 million in funding from the investors such as Coinbase Ventures, Valar Ventures, and Pantera Capital. The company announced it will halt its operations and will freeze withdrawals of customer funds.
As per the company statements, the decision was made during a string of events in the industry such as the collapse of the Terra ecosystem, the financial troubles by Celsius Network as well as Luna and Three Arrows Capital. The company said that it also faced withdrawals worth $197 million. The head of corporate finance and investments at Nexo Tatiana Metodieva said:
“We sympathize with all affected by the drastic market downturn. However, difficult times always teach us the importance of business model viability and prudent risk management.”
She added that she is confident the industry leaders will find their way out of the crisis on the foundation of competitive discipline and strength.
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