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Acquisition talks between cryptocurrency lending and borrowing company Vauld and its potential buyer, Nexo, have reportedly come to an end, according to an email obtained by Bloomberg. Vauld suspended withdrawals in July due to a liquidity crisis and sought creditor protection. The company was one of several crypto lending and borrowing firms that were forced to halt operations this summer due to the industry-wide liquidity crisis, which was exacerbated by the collapse of FTX. Nexo, a competitor of Vauld, stepped in to try and rescue the struggling firm and began acquisition talks. These talks were extended as recently as September 6, but it seems that they have now come to an end.
Vauld stated in the email obtained by Bloomberg that past discussions with Nexo “have unfortunately not come to fruition.” However, Nexo has disputed this and claims that it submitted a revised acquisition proposal on December 2 and is still cooperating with Vauld. The company released a statement saying that it is dedicated to “offering creditors the most favorable path forward” and will work to help creditors.
Nexo has faced its own challenges in recent months, including accusations of embezzling charity funds and the decision to discontinue its services in the U.S. due to regulatory challenges. The company announced in December that it would phase out its high-yield product for U.S. customers, citing “more than 18 months of good-faith dialogue with US state and federal regulators which has come to a dead end.” This decision was made amid increased scrutiny of the balance sheet transparency and health of crypto exchanges, particularly major lenders, following the collapse of FTX.
Vauld is set to present a restructuring plan by January 20, leaving little time for an agreement to be reached between the two companies, despite Nexo’s insistence that talks are ongoing. It remains to be seen how the breakdown in negotiations will impact the future of both Vauld and Nexo.
