The crypto-lending platform Nexo has once again extended the due-diligence period for deciding on acquiring its competitor Vauld. The Block reports, citing an informed source.
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On July 5, the firm began a 60-day review of the potential deal. In September, the company decided to extend the period by another month. According to a source, this time Nexo did not specify a deadline — the due diligence will take \”as long as necessary\”.
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Earlier, Kalin Methodiev, the managing partner of the firm, during an AMA-session confirmed the extension of the period. He noted that any problematic deal is \”not easy\”.
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\”I am glad to report that our meetings at the senior level at Vauld are going very well. We feel that we are seeing this forward movement in a very similar way: not only do we care about helping people immediately recover their losses, we also have a plan for how this could play out over a longer period of time,\” stressed Methodiev.
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According to him, if the deal goes through, the final plan is to allow Vauld users to \”restore their balances to the maximum possible extent and provide them with the Nexo platform\”.
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On July 4, Vauld announced the suspension of operations and possible restructuring due to financial difficulties. The following day it emerged that Nexo signed a preliminary agreement to acquire the company.
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Subsequently, media citing court documents found that Vauld’s outstanding debt after these events stood at $402 million. Of this, $363 million was owed to retail investors.
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The platform’s problems began with the collapse of Terra — the equivalent of $28 million it held in UST staking. The next blow was the overall downturn of the crypto market — the firm held positions in Bitcoin, Ethereum, MATIC and XRP.
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In August, the Singapore High Court granted Vauld a moratorium on proceedings until 7 November 2022.
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According to the press, Indian authorities froze the crypto-lending platform’s access to assets valued at 370 crore (~$46 million).
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