London-based crypto lending firm, Nexo, is set to acquire fellow lender and crypto exchange Vauld. The move comes after Vauld halted deposits, withdrawals and trading on its platforms yesterday, citing financial challenges. In a statement at the time, the company had said that it was exploring all options “including potential restructuring options” to protect investors interests.
“I understand that a lot of our customers are nervous about your funds. We are working tirelessly to ensure your financials are protected. To that end, we’ve signed an indicative term sheet with@Nexo to acquire up to 100% of Vauld,” Darshan Bathija, the chief executive officer of Vauld, tweeted earlier today. The tweet was retweeted by Antoni Trenchev, the co-founder and managing partner of Nexo.
The details of the deal haven’t been released, Trenchev told crypto publication The Block, reported that the term sheet grants the London-based firm a 60-day exclusive exploratory period in order to conduct due diligence. He also said that the company may restructure Vauld or refinance the platform depending on the outcome of its due diligence.
Vauld became the latest decentralized finance (DeFi) firm to be hit by the crypto market’s recent downturn. In its statement on July 4, the company said that its financial challenges were “due to a combination of circumstances”, which included volatile market conditions, financial difficulties of key business partners, and withdrawals in excess of %197.7 million since 12 June, 2022, triggered by the downfall of Terraform Labs’ UST stablecoin, the Celsius Network pausing withdrawals and Three Arrows Capital defaulting on its loans.
The company’s decision to halt all activity on its platform led many to take to social media and call out influencers who had promoted the firm initially. Vauld began as Bank of Hodlers (BoH) back in 2018, and rebranded in the second quarter of 2020. According to a roadmap presented on the company’s website, it was planning to issue cards, bank accounts and cross border payments using its platform in future. The company was founded by Bathija and Sanju Sony Kurian, who is based in Singapore.
This is not the first time that Nexo has sought to bail out a beleaguered crypto firm. Last month, the company had offered to buy assets owned by ailing crypto lending firm Celsius Network. In a tweet on June 13, the company claimed that all its products were “operating normally”.
“As always – deposits and withdrawals are processed instantly so that all of you can make the necessary arrangements in this latest downturn in the markets,” the tweet said.
