Nexo eyes acquisition of Vauld, the crypto-lending platform

The crypto-lending platform Nexo and its competitor Vauld signed a preliminary agreement for the sale of the latter, The Block reported by sources familiar with the situation.

A day earlier, the Peter Thiel-backed startup announced a possible restructuring of Vauld. The platform halted trading, withdrawal and custody operations.

Management said the move was driven by financial difficulties stemming from unfavourable market conditions, as well as issues with counterparties and a liquidity drain.

To carry out the initiatives, the startup hired Kroll Pte Limited as financial adviser, as well as law firms Cyril Amarchand Mangaldas and Rajah & Tann Singapore.

The agreement with Nexo envisages selling up to 100% of the stake in the troubled firm if due diligence is positive, a process allotted 60 days. In addition to restructuring, refinancing could be an option if there is economic sense.

\”We are the only potential buyers. We need to look at their balance sheet.\”, said Antoni Trenchev, co‑founder and CEO of Nexo.

The executive said the interest in Vauld stems from its popularity in the company’s priority markets of India and Southeast Asia.

Sources said the balance-sheet gap could amount to between $50 million and $100 million.

On July 5, CoinLoan also announced temporary withdrawal limits of $5,000 per day due to market conditions. Client funds remain safe.

Representatives said the situation is not related to problems affecting other industry participants, as the platform’s policy bans investments in \”risky activities\”.

Earlier, Trenchev compared the crypto-market crisis to the 1907 bank panic.

Earlier, Nexo said it was prepared to buy Celsius’s loan portfolio from its rival — the offer was valid until June 20. The platform also pursued cooperation with Three Arrows Capital shortly before the hedge fund’s bankruptcy.

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