Nexo, a London-based cryptocurrency lending firm is set to acquire Vauld, the crypto platform that recently shut down its operations citing ‘financial challenges’. 

“I understand that a lot of our customers are nervous about your funds. We are working tirelessly to ensure your financials are protected. We have signed an indicative term sheet with Nexo, to acquire up to 100 per cent of Vauld,” Darshan Bathija, CEO,Vauld, said in his tweet. 

The completion of this transaction is pending due diligence - which both teams are working on. Bathija further said that Vauld has strived to deliver long term value to all customers, and believes coming under the Nexo umbrella will significantly help achieve this, 

Nexo, in a tweet had said, “in a consolidation effort aimed at the betterment of the space, as well as the strengthening of our presence in Southeast Asia, we’ve entered exclusive talks with Vauld for the full acquisition of the Singapore-based company.”

This comes after Vauld suspended all withdrawals, trading and deposits on the platform as the exchange was facing ‘financial challenges’. The platform had said that it is exploring and analysing all possible options, including potential restructuring options, that would best protect the interest of Vauld’s stakeholders. 

The company in a blog post announced that they are facing financial challenges despite their best efforts. Bathija in the post wrote, “This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate.” 

Vauld recorded customer withdrawals of over $197.7 million since June 12, 2022. The platform attributed the fall to decline of the cryptocurrency market that was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans. 

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