Vauld says Nexo Acquisition has Broken Down

Despite Vauld’s protests, Nexo suggests that its plans are still on track.

According to a Bloomberg report published on December 26, acquisition talks between Vauld and its potential buyer, Nexo, have broken down.

Due to a widespread liquidity crisis, Vauld was one of several cryptocurrency lending and borrowing companies that suspended withdrawals this summer. The company ceased operations on July 4 and filed for creditor protection on July 8.

Nexo, Vauld’s competitor at the time, took steps to acquire and save the failing company. According to Vauld’s updates, Nexo was still in acquisition talks as recently as September 6, as the two companies extended the due diligence process at the time.

However, in an email obtained by Bloomberg today, Vauld appeared to indicate that acquisition talks had ended. Vauld stated in that email that it was “previously exploring a potential acquisition” with Nexo. The firm summarised recent events by stating that previous discussions “sadly did not come to fruition.”

Nexo, on the other hand, indicated in its own statement that it is still working with Vauld. Nexo stated that on December 2, it submitted a revised acquisition proposal.

Nexo stated in a statement quoted by Bloomberg that it is committed to “offering creditors the most favourable path forward” and that it will work to assist those creditors.

Nexo mentioned other difficulties in recent months, ostensibly referring to a smear campaign in which its founders were accused of embezzling charity funds. Due to regulatory challenges, the company is also discontinuing its services in the United States, a change that has most likely consumed its attention in recent months.

Vauld is required to present a restructuring plan by January 20. As a result, despite Nexo’s insistence that talks are still ongoing, there is little time for the two companies to reach an agreement.