Nexo has initiated the process to potentially acquire the troubled Crypto lender Vauld. This comes shortly After competitor crypto lender Vauld suddenly stopped accepting customer withdrawals on Monday.
In an exclusive interview with The Block on Tuesday, the Company announced that it had signed an indicative term sheet with Vauld with a view to acquiring up to 100% of the Singapore-based firm. The term sheet provides an exclusive 60-day exploration period to London-based Nexo, during which it will conduct due diligence.
Antoni Trenchev, Nexo co-founder added that they need to examine what exactly is on the Vauld books a process that is going to take some time. However, he made it clear that Nexo is the only one accessing the company at the moment because they have the exclusive crawl period.
Cryptopolitan recently covered an article on how the cryptocurrency lending and trading platform halted all transactions and contacted legal and financial advisers to explore restructuring possibilities. By the time of publishing, customer withdrawals continue to be suspended.
Nexo vs Vauld
According to Trenchev, based on how the due diligence procedure plays out, the Company may decide to restructure or refinance Vauld. In other words, if Vauld has investments or assets staked for longer periods of time, the Company might seize them and immediately give liquidity. On the other hand, Trenchev remarked, if their assets were lost, Nexo might be able to replace them if that made sense.
The London-based Company has contacted other distressed businesses in the past apart from Vauld. Last month, the Company made an offer to purchase the troubled rival Celsius’s assets. Due to Celsius’ lack of interest in striking a deal, the offer was up for a week before expiring.Vauld, however, appears intrigued.
According to the Company’s CEO;
“Operating under the Nexo brand puts us in a strong position to pursue the fulfillment of our fiduciary obligations to our clients and, at the same time, to carry out the ambitious roadmaps of both companies, independent of market conditions”
According to Trenchev, the Company is interested in Vauld since it has tremendous traction in India and Southeast Asia, which are crucial markets for us for Nexo.