Nexo Will No Longer Acquire Vauld

According to a CoinDesk report, Vauld said that the acquisition talks with Nexo failed to come to fruition, citing several reasons.

Recall that Vauld received protection from its creditors in July, days after suspending trading and withdrawal services on its platform. The firm cited financial challenges from a prolonged bear market due to the collapse of the Terra-Luna ecosystem.

Although Vauld had laid off 30% of its workforce in the month before in an attempt to reduce expenses, the lender eventually joined the list of crypto firms affected by the ongoing market crisis.

Shortly after, Vauld announced a 100% acquisition deal with Nexo to rescue the former from bankruptcy. Both firms signed a non-binding term sheet, which gave Nexo 60 days to conduct due diligence before moving on with the deal.

While the cost of the deal was undisclosed, Nexo planned to use the acquisition to strengthen its presence in the Asian crypto market.

Unfortunately, Vauld has called off the deal, citing Nexo’s failure to meet specific criteria.

“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,” the troubled company said.

Vauld: Nexo Did Not Respond to Due Diligence Requests

Vauld said one of its reasons for cancelling the acquisition was Nexo’s failure to respond to due diligence requests for a solvency evaluation that would assure its creditors.

The embattled crypto lender also mentioned that Nexo’s proposal did not offer its creditors an early exit option, which it emphasised was necessary for a successful restructuring.

Vauld further highlighted Nexo’s plan to phase out its products and services from the U.S. due to a fallout with regulatory authorities. Nexo announced on December 5 that it would gradually leave the region in an “orderly fashion over the coming months.”

Vauld believes the move would leave its American customers scrambling for a way to handle their claims.

Meanwhile, Vauld has until January 20 to come up with a restructuring plan, according to the court’s ruling.

(By William A. Frederick)