Nexo today announced it signed an indicative term sheet with crypto financial services company the troubled Singapore-based crypto lender Vauld.
Under the agreement, Nexo has a 60-day exploratory period that would see the company conduct a due diligence process related to the intended acquisition.
Pending a satisfactory outcome, Nexo intends to buy up to 100% of the firm and reorganize its future operations to deepen its presence in Asia.
“Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions,” Vauld’s CEO Darshan Bathija said in a statement.
Decrypt reached out to Nexo for additional comments and will update this story should we hear back.
A lifesaver for Vauld?
Established in 2018, Vauld lets customers buy, lend, borrow and trade cryptocurrencies from one unified platform. To date, the company raised $27 million in funding from investors including Valar Ventures, Coinbase Ventures, and Pantera Capital.
On Monday, the firm announced it was halting its operations and freezing withdrawals of customer funds.
According to the company, the decision was made due to a string of recent events in the industry, including the collapse of the Terra ecosystem in May, financial troubles encountered by Celsius Network, and Three Arrows Capital (3AC) defaulting on its loans.
The company said that since June 12 it had faced withdrawals totaling $197.7 million.
“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,” said Tatiana Metodieva, Head of Corporate Finance and Investments at Nexo.
Metodieva added she is confident “the industry leaders will navigate out of the current crisis on the foundation of competitive strength, discipline, and uncompromising responsibility to customers.”
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Source: https://decrypt.co/104433/nexo-eyes-acquisition-troubled-crypto-lender-vauld
