Overview

Click to expand overview

Nexo has an exclusivity period for its acquisition of Vauld – having had to hire different advisors and invest significant time, money, and efforts for the successful completion The UK-based crypto lender Nexo sent an open letter to its competitor Vauld's creditors on December 26 with its final and amended proposal for Vauld's acquisition. Amidst several discussions and a three-month moratorium extension, Nexo a crypto lending firm came as Vauld’s saving grace. However, at press time the notion would not In a letter sent to Vauld’s creditors on Monday and reviewed by Blockworks, Nexo stopped short of calling off ongoing negotiations surrounding the long running potential At the time of the deal agreement, Nexo entered a two-month exclusive due diligence obligation with Vauld to potentially purchase the company. However, the Switzerland “Crypto lending platform Nexo has announced that it has started a process to buy Vauld, which has stopped withdrawals.” On Mondy, Vauld, the crypto lender based in On Dec 26, reports emerged that Nexo, a leader in the digital assets lending space, has backed out of its acquisition deal with its troubled Singapore-based rival, Vauld Prominent crypto firm Vauld filed for The Coinbase-backed firm owed $400 million to its Meta2140 on LinkedIn: Nexo pours cold water on Vauld Acquisition deal Nexo will acquire Vauld if Vauld could reduce their balance sheet hole from $81M to $40M. Nexo’s proposal of a minimum 18 months lookup period for Vauld’s users means that Nexo We wanted to share a meaningful update with you on the progress of the intended acquisition of Vauld by London-based crypto lending platform, Nexo Inc. (“Nexo”). The 60-day exclusivity

Nexo Pours Cold Water on Vauld Acquisition Deal: What Happened?

The crypto world watched with bated breath as Nexo, a leading digital asset lending space leader based in the UK, initially stepped up as Vauld’s "saving grace" amidst its financial troubles. The Singapore-based rival, Vauld, had filed for protection and owed creditors a significant $400 million. Nexo\'s potential acquisition offered a glimmer of hope. But what led to the deal falling apart?

The Initial Agreement: Nexo\'s Exclusivity Period

When the deal was initially discussed, Nexo entered a 60-day exclusivity period to conduct due diligence on Vauld. This exclusivity meant Nexo had the sole right to negotiate the acquisition. According to reports, Nexo has an exclusivity period for its acquisition of Vauld – having had to hire different advisors and invest significant time, money, and efforts for the successful completion. However, even with this investment of resources, issues arose.

Nexo\'s Concerns: An $81M to $40M Challenge

One key sticking point appears to be Vauld\'s balance sheet deficit. Nexo will acquire Vauld if Vauld could reduce their balance sheet hole from $81M to $40M. This condition highlights the significant financial challenges Vauld faced and the uphill battle for a successful acquisition.

The Letter to Creditors: A Final Proposal?

On December 26th, Nexo sent an open letter to Vauld\'s creditors. The UK-based crypto lender Nexo sent an open letter to its competitor Vauld\'s creditors on December 26 with its final and amended proposal for Vauld\'s acquisition. This letter suggests a final attempt by Nexo to restructure the deal and address its concerns.

Why the Deal Stalled: Unspecified Issues and Negotiations

While specific details remain limited, it\'s clear that negotiations surrounding the potential acquisition have been lengthy and complex. In a letter sent to Vauld’s creditors on Monday and reviewed by Blockworks, Nexo stopped short of calling off ongoing negotiations surrounding the long running potential acquisition. The phrasing suggests ongoing, but strained, discussions.

A Look-up Period Concern?

Reports also mention a proposed lockup period that may have raised concerns. Nexo’s proposal of a minimum 18 months lookup period for Vauld’s users means that Nexo ... [details not specified, but implication is negative]. The length of such a lockup could potentially impact user access to their funds and likely played a role in the deal\'s complications.

Where Does Vauld Go From Here?

With Nexo seemingly backing away, Vauld\'s future remains uncertain. The initial three-month moratorium extension provided some breathing room, but the Coinbase-backed firm\'s significant debt ($400 million) poses a major hurdle. The crypto community will be watching closely to see if another potential suitor emerges or if Vauld faces a more challenging path forward. The original notion of Nexo as Vauld\'s saving grace now seems unlikely, at press time