Crypto lender Nexo could potentially be in the process of acquiring rival Vauld, which abruptly halted customer withdrawals earlier this week.
Vauld has signed an indicative term sheet granting Nexo a 60-day exclusive exploratory period in which it will conduct due diligence. The London-based firm plans to acquire up to 100% of the Singapore-based company.
“We have to see what exactly is on their books, and it’s going to take a little while,” said Nexo co-founder Antoni Trenchev. “But since we have the exclusive exploratory period, we are the only ones looking at them right now.”
Due diligence dependent
Depending on the results of the due diligence process, Trenchev said Nexo could either restructure or refinance Vauld. For instance, Nexo could take assets of Vauld’s staked for longer periods or longer-term investments and instantly provide liquidity. Alternatively, if assets are lost, Trenchev said they could be replenished, if it makes sense.
“We have to view it in the overall context of if we step in, can we restructure the business so that it is functioning again, so that it is profitable within the Nexo umbrella, which as a company is profitable and whether we can accumulate that,” Trenchev said. According to him, Vauld has “huge traction in India and Southeast Asia, which are important markets to us.”
Vauld victim of crypto crash
Based in India, Vauld is a crypto trading and lending exchange platform founded in 2018 by Darshan Bathija and Sanju Kurian, with assets under management of close to $1 billion at its peak.
However, Vauld became the latest victim of the crypto credit crunch and suspended all withdrawals, trading and deposits earlier this week. It also hired legal and financial advisors to consider its restructuring options. Currently, client withdrawals still remain halted. Earlier, Nexo had also offered to buy out beleaguered rival Celsius’s assets.