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Nexo Moves to Acquire Embattled Crypto Lender Vauld

Switzerland-based crypto lender Nexo has unveiled intentions of buying fellow lending platform Vauld. Nexo announced this news via Twitter on July 5, a day after Vauld halted operations due to financial challenges. Through this acquisition, Nexo hopes to better the crypto space and bolster its presence in Southeast Asia.

 

In a subsequent press release, Nexo said it signed an indicative term sheet with Vauld. This agreement will see Vauld offer Nexo a 60-day exclusive exploratory period regarding the acquisition intentions. This period will give Nexo the time to conduct due diligence before deciding whether it will go ahead with the acquisition.

Should the results of the initiated due diligence process prove satisfactory, Nexo plans to acquire up to 100% of Vauld. After the purchase, Nexo plans to reorganize future operations with a focus on expanding its presence in Asia.

Vauld CEO Darshan Bathija said:

Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions.

Swooping In to Help Distressed Crypto Lenders

In the news release, Nexo said the current situation in the crypto market is similar to the Bank Panic of 1907. At the time, there was a lot of leverage in the banking system and many companies got into financial trouble.

Nexo believes the current situation requires capable and well-capitalized firms to step up and provide system solutions. The company believes it meets the above requirements and is well able to bail out beleaguered crypto firms.

Nexo CFA Tatiana Metodieva said Nexo sympathizes with all victims of the crypto winter. However, she believes difficult times impart lessons on the importance of business model viability and prudent risk management.

Metodieva added industry leaders would find their way out of the current turmoil. Nonetheless, she claims even industry leaders must exercise competitive strength, discipline, and uncompromising responsibility to customers.

This news comes after Nexo announced its intention to purchase Celsius Network after pausing operations due to extreme market conditions. Lastly, Celsius Network has not taken up Nexo on its offer yet, despite struggling to resume withdrawals, swaps, and transfers.

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