Nexo Terminates Acquisition of Singaporean Crypto Lender Vauld
• Nexo recently terminated its acquisition deal with Singaporean crypto lender Vauld.
• The two parties had been in discussions since early July, but Nexo decided to opt out of the deal.
• Vauld founder and CEO Darshan Bathija sent an email to the firm’s creditors lamenting the deal’s fate.
Nexo, a Swiss crypto lender, recently announced the termination of its acquisition deal with Singaporean crypto lender Vauld. The two parties had been in discussions for six months since early July, when Vauld had suspended client withdrawals due to a severe liquidity crunch. Vauld then hired legal and financial advisors to provide potential restructuring options, and Nexo entered a two-month exclusive due diligence obligation to potentially purchase the company.
Despite the agreement, Nexo twice extended the due diligence grace period, indicating a lack of confidence in the deal. Eventually, both parties formally terminated discussions, and Vauld founder and CEO Darshan Bathija sent an email to the firm’s creditors lamenting the deal’s fate.
The failure of the acquisition deal raises questions around the sustainability of Vauld’s business model, and its future prospects. Vauld had been struggling with liquidity issues since its inception, and the failed acquisition deal could be a further setback for the company. Furthermore, the lack of an exit plan raises concerns around the protection of Vauld’s customers and creditors.
Nexo, on the other hand, has been growing steadily since its launch in 2018. The firm has become one of the largest players in the crypto lending market, and the termination of the acquisition deal could be a sign that the company is focused on its own growth. The decision to opt out of the deal highlights Nexo’s commitment to its own business operations, and its focus on its own customers.
The failed acquisition deal between Nexo and Vauld is a reminder of the risks associated with the crypto lending industry. The lack of regulation and oversight in the industry means that investors and customers need to be extra cautious when choosing a crypto lender. With that said, the failed acquisition is unlikely to have a significant impact on the industry as a whole, as it is still in its early stages.