Nexo Signs Term Sheet With Troubled Crypto Lender Vauld For Potential Acquisition

Nexo announced signing a term sheet with Vauld, that could result in a 100% buyout.

Bishal Kumar Chanda2 min read
Nexo Signs Term Sheet With Troubled Crypto Lender Vauld For Potential Acquisition

Nexo today announced signing an indicative term sheet with the troubled crypto lender Vauld. Reportedly, this could result in Nexo buying 100% of the Singapore-based company.

"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," said Nexo's Managing Partner, Antoni Trenchev.

Nexo announces Vauld acquisition.

Under the agreement, Nexo has given a 60-day exploratory period to conduct a due diligence process related to the intended acquisition. If successful, Nexo plans to restructure Vauld for its expansion plans in Southeast Asia and India.

Vauld CEO Darshan Bathija said that operating under Nexo puts "instantly in a position of strength." It will help the firm keep executing its fiduciary obligations to customers while executing "both companies' ambitious roadmaps, regardless of the market conditions."

Nexo Becomes a Lifesaver For Vauld

Established in 2018, Vauld is a crypto lending platform where customers can buy, lend, borrow and trade cryptocurrencies. To date, Vauld has raised $27 million in funding from venture capitalists like Coinbase Ventures, Valar Ventures, and Pantera Capital.

On Monday, the firm announced halting its operations and freezing customer withdrawals. Furthermore, Vauld cited a string of recent events for the move, like the Terra ecosystem collapse, Celsius's financial woes, and 3AC defaulting loans.

Vauld CEO comments on Nexo acquisition

Reportedly, Vauld has faced withdrawals totaling $197.7 million since June 12. Nexo's 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."

Metodieva is confident that "the industry leaders will navigate out of the current crisis on the foundation of competitive strength, discipline, and uncompromising responsibility to customers."

Meanwhile, Vauld is not the first firm in Nexo's crosshairs amid the market downturn. In June, Nexo offered to buy some assets from rival Celsius after it paused withdrawals citing extreme market conditions.

On June 23, Nexo revealed working with banking giant Citigroup while pursuing a consolidation of other embattled crypto lenders.

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