- Crypto lenders Vauld and Nexo can’t seem to agree on acquisition plans.
- Nexo submitted a revised plan to creditors on December 2.
- 40% of Vauld’s US users will not have access to benefits of the acquisition.
Crypto lender Vauld is left with a deadline until January 20 to prepare and present a resurrecting plan to creditors, while the acquisition discussion with Nexo still continues without a concrete decision.
In an email addressed to its creditors, Vauld claimed that acquisition talks with Nexo “had unfortunately not come to fruition.” In early December, Nexo shared a revised acquisition proposal with Vauld. Moreover, via a letter sent to Vauld creditors, Nexo highlighted the “challenges” faced during their talking phase, citing “defamation” and “the spread of misinformation on social media.”
However, Nexo stated that the crypto firm is committed to provide the creditors with the best possible recovery path ahead. Nexo also added:
Nexo is determined to continue working for the benefit of the creditors and to support the development of the blockchain ecosystem.
In July, Nexo and Vauld started talking about the acquisition after Vauld halted withdrawals, as well as onboarded advisors to potentially restructure the organization.
Vauld was not the only crypto-lending platform devastated by this year’s crypto shakeout. Companies including the hedge fund Three Arrows Capital and crypto exchange FTX alongside its sister trading firm Alameda Research collapsed. Additionally, Celsius Network Limited, Voyager Digital Limited, and BlockFi filed for bankruptcy.
Earlier this month, Nexa announced that it would discontinue service in the US after struggling to meet on an agreement. As a response, Vauld said that the benefits of the acquisition would not be fully accessible to about 40% of its US customers.
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