The cryptocurrency-lending platform Nexo will require another 30 days to decide on acquiring its competitor Vauld. The Block reports, citing the company’s letter.
On 5 July, Nexo began a comprehensive 60-day review of the potential deal. In September, the company decided to extend the period by another month.
Co-founder Antoni Trenchev confirmed the information to the publication.
On 4 July Vauld announced the suspension of operations and a possible restructuring due to financial difficulties. The following day it emerged that Nexo signed with the company a preliminary agreement to acquire.
Subsequently, media citing court documents found that Vauld’s outstanding debt after these events amounted to $402 million. Of these, $363 million was owed to retail investors.
The platform’s troubles began with the Terra collapse — about $28 million Vauld held in UST staking. The next blow was the broad downturn in the crypto market — Vauld held positions in Bitcoin, Ethereum, MATIC and XRP.
The third factor was defaults by certain counterparties, which led to irrecoverable losses of about $1.7 million. The fourth reason for bankruptcy was expenses on sponsorship agreements.
As reported, in August the Singapore High Court granted Vauld a moratorium on proceedings until 7 November 2022.
According to media reports, Indian authorities froze the crypto-lending platform’s assets valued at 370 crores (~$46 million).
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