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Crypto lending platform Nexo informed Vauld’s creditors through an open letter that its deal with rival Vauld is still on.
Vauld was searching for restructuring options and filed for creditor protection. As noted in an open letter, Nexo tabled a revised plan of acquisition on December 2nd, 2022. The company worked on the transaction which “faced daily challenges, such as receiving slow and incomprehensive financial and legal due diligence information.”
Vauld noted in a private message on Twitter: “We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan.To provide a very brief summary, our discussions with Nexo have unfortunately not come to fruition.”
As per media reports, Nexo announced on December 5th, that the financial services and products would be completely halted in the United States. Furthermore, ‘Earn Interest’ products will no longer be seen in eight states, including California, Washington, Oklahoma, New York, Vermont, Maryland, Kentucky — which has now filed lawsuits on crypto lender.
Nexo ceased operations and restrict new signups in the region. The company said: “Our decision comes after more than 18 months of good-faith dialogue with US state and federal regulators which has come to a dead end.”
No solution was made between the U.S. and the exchange as per media reports.
A letter signed by Nexo officials stated, that “The intention of this communication was to create transparency to Vauld’s creditors, where it has been insufficient, regarding the merits of Nexo’s acquisition plan, as well as to contribute final improvements to some of the proposal’s commercial terms based on feedback from Vauld’s community.”
According to Bloomberg, Nexo and Vauld was in news about an agreement in July, after the Singapore-based entity halted transactions and opted for advisors. The crypto exchange FTX collapse following TerraUSD crash in May, led to firms like Three Arrow Capital, Celsius Network, BlockFi, Voyager Digital and several firms that were associated with FTX or Terra file for bankruptcy. According to Vauld, over 40% of users in the U.S. would be able to avail the advantages of acquisition.
Kalin Metodiev, Nexo co-founder and managing siad in an email, that “Nexo has not given up on its attempt to save Vauld and help its creditors recover the maximum possible platform funds.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
