- On Monday, the company suspended operations and stopped client withdrawals.
- Since June 12, withdrawals totaling $197.7 million have been reported by the firm.
The Singapore-based crypto lender Vauld has inked a preliminary term agreement with Nexo today. Due diligence on the proposed purchase would be conducted by Nexo within a 60-day exploratory period stipulated in the agreement. It’s Nexo’s goal to take over 100% of the company and restructure its activities in Asia if the negotiations go well.
In a consolidation effort aimed at the betterment of the space, as well as the strengthening of our presence in Southeast Asia, we’ve entered exclusive talks with @VauldOfficial for the full acquisition of the Singapore-based company.https://t.co/AtsYQkEc8y
— Nexo (@Nexo) July 5, 2022
Darshan Bathija, CEO of Vauld, stated:
“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 was founded in 2018 and offers a single platform for clients to purchase, lend, borrow, and exchange cryptocurrencies. Valar Ventures, Coinbase Ventures, and Pantera Capital have all contributed $27 million to the company’s coffers so far. On Monday, the company stated that it was suspending operations and stopping client withdrawals.
Several recent industry developments, including the collapse of Terra, Celsius Network’s financial difficulties and the failure of Three Arrows Capital’s loans, prompted the business to make the choice, according to the company. Since June 12, withdrawals totaling $197.7 million have been reported by the firm.
Tatiana Metodieva, Head of Corporate Finance and Investments at Nexo stated:
“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.” Adding further, “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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