A day after Singapore-based crypto platform Vauld announced it was suspending all withdrawals, trading and deposits immediately, Nexo has offered to acquire the troubled platform.
Nexo plans to acquire Vauld
Global digital assets institution Nexo has signed an indicative term sheet with Vauld, allowing Nexo a 60-day “exploratory period” related to its intended acquisition of the company, pending a satisfactory outcome of the due diligence process.
Upon successful completion, Nexo says it plans to acquire up to 100% of Vauld and reorganise its future operations with the aim to accelerate its deeper presence in Asia.
In a statement on Monday, Vauld CEO Darshan Bathija announced that the company is facing “financial challenges” due to a combination of volatile market conditions, financial difficulties faced by its key business partners and customer withdrawals in excess of $197.7 million since 12 June.
The firm suspended all withdrawals, trading and deposits on the Vauld platform with immediate effect as it looked to explore “the suitability of potential restructuring options”.
“Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers,” Bathija says, adding the deal will enable both companies to follow through with their roadmaps “regardless of the market conditions”.
Nexo says that while it aims to provide “immediate assistance and alleviate withdrawal limitations put in place on Vauld’s platform, greater plans for the future are already in the making”.
“The aim is not only to protect Vauld’s existing customer base to the fullest extent possible but also to give them access to an improved range of services,” Nexo adds.
The challenging market conditions in the crypto market have impacted a number of companies. Earlier this week, US-based crypto platform Voyager Digital also suspended all withdrawals, trading and deposits.
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