Singapore-based crypto lender Vauld may be acquired by major crypto lender Nexo (NEXO).
The news was announced by Vauld CEO Darshan Bathija today, saying that the exchange has signed “a designating terms sheet” with Nexo to purchase “up to 100% Vauld.”
The CEO added that,
“The completion of this transaction is pending due diligence – which both teams are working on as we speak.“
Per Bathija, this move comes as the company is “working tirelessly to ensure [users’] financials are protected,” given that a lot of the “customers are nervous about” their funds.
“Vauld has strived to deliver lasting value to all customers and we believe that being under the Nexo umbrella will significantly help achieve this.”
Nexo co-founder Antoni Trenchev was quoted by Block as saying,
“We have to see exactly what’s on their books and it will take a while. […] But since we have an exclusive [60-day] discovery window, we’re the only ones reviewing them right now. “
The co-founder said they were interested in Vauld because it has “huge traction in India and Southeast Asia, which are important markets for us.” Nexo is looking at whether they can restructure or refinance Vauld, Trenchev said, “to get it back up and running, to make it profitable in the Nexo umbrella.”
Coinbase and other major Vauld-backed investors just yesterday announced that they were suspending all withdrawals, deposits, and trading citing “financial challenges” amid the pandemic market conditions persist.
Founded in 2018, Vauld is backed by Coinbase’s venture arm, Pantera Capital, Valar Ventures, CMT Digital, Gumi Cryptos, Compound Labs founder Robert Leshner, and Cadenza Capital. It is headquartered in Singapore with most of their workforce based in India. At the end of June, Vauld announced that it was laying off 30% of its workforce.
Meanwhile, in mid-June, UK-based Nexo made an offer for struggling CEL Network (CEL) properties, which appears to have failed.