Crypto lending platform Nexo will need another 30 days to make a decision to acquire rival Vauld. Block writes about it, citing a letter from the company.

According to the document, on July 5, Nexo began a full 60-day review of the potential deal. In September, the company decided to extend the deadline for another month.

The co-founder of the platform, Anthony Trenchev, confirmed this information to the publication.

On July 4, Vauld announced the suspension of operations due to financial difficulties and a possible restructuring. The next day it was learned that Nexo had signed a pre-acquisition agreement with the company.

Later, the media learned, citing documents for the court, that Vauld had $402 million in outstanding debt after these events, of which $363 million fell to retail investors.

The platform’s problems began with the collapse of Terra – UST held the equivalent of $28 million in stock. The next blow was the general decline of the crypto market – Vauld took positions in Bitcoin, Ethereum, MATIC and XRP.

The third factor in the loss of financial stability was the default by some counterparties, resulting in irreparable losses of ~$1.7 million. The fourth reason for the bankruptcy to begin was the spending on sponsorship deals.

Recall that in August, the Singapore Supreme Court gave Vauld a moratorium on proceedings until 7 November 2022.

According to media reports, Indian authorities have frozen access to assets worth 370 crore (~$46 million) for a crypto lending platform.

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