Media: Nexo agrees to buy Vauld crypto lending platform
- July 5, 2022
- 0
Crypto lending platform Nexo and rival Vauld have signed a preliminary agreement to sell the latter. This was reported to The Block by sources familiar with the situation.
Crypto lending platform Nexo and rival Vauld have signed a preliminary agreement to sell the latter. This was reported to The Block by sources familiar with the situation.
The day before, the Peter Thiel-backed startup announced a possible restructuring of Vauld. The platform has suspended trading, withdrawals and deposits.
Management attributed the decision to financial difficulties arising from adverse market conditions, as well as the impact of counterparty problems and liquidity outflows.
To implement the initiative, the startup has hired Kroll Pte Limited as financial advisors, as well as law firms Cyril Amaarchand Mangaldas and Rajah & Tann Singapore.
The deal with Nexo provides for the sale of up to 100% of the stake in the troubled company, in the event of a positive due diligence lasting 60 days. In addition to restructuring, the option of refinancing is also possible if it makes economic sense.
“We are the only potential buyers. We need to see their balance.”– said the co-founder and CEO of Nexo Antoni Trenchev.
The senior executive explained the interest in Vauld with “the company’s popularity in its primary markets in India and Southeast Asia”.
“The gap on the balance sheet could be between $50 million and $100 million,” the sources said.
On July 5, it was also known that due to “market conditions”, limits on withdrawals of $5,000 per day funds were temporarily introduced by the CoinLoan platform. Client funds remain safe.
Representatives of the project said that the situation is not connected with the problems of other participants in the industry, as its policy prohibits investment in “risky activities”.
Recall that Trenchev compared the crisis in the crypto market with the banking panic of 1907.
Earlier, Nexo announced that it is ready to buy its loan portfolio from rival Celsius. The campaign is valid until 20 June. The platform also sought to collaborate with Three Arrows Capital shortly before the hedge fund went bankrupt.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
