Crypto lender Vauld has confirmed the termination of ongoing negotiations surrounding the long running potential purchase by rival Nexo.
Nexo’s plans to acquire the troubled platform have fallen apart after nearly six months of deliberations as it reached the “enough is enough” point. The lender has already introduced a series of amendments to their original bid, but Vauld rejected the final proposal for the deal calling it “would not be in the best interests of its debtors.”
“We have sought a mutual agreement with Nexo to terminate the existing exclusivity arrangements, and we are continuing our active engagement with the shortlisted fund managers in developing a viable strategy that would best serve the creditors’ interests,” Vauld said in a statement.
The acquisition plan has been already in hot water for a while since Vauld founder and CEO Darshan Bathija told the media that the takeover had been canceled. However, Nexo denied reports suggesting that it was scrapping plans to acquire its beleaguered rival.
“Mid-next week, Nexo will host a live AMA (ask-me-anything) session to address all outstanding questions about our proposal, and we are adamant about the fact that this is the offer that creates most value for Vauld’s customers,” a Nexo spokesperson said in an email.
Earlier in June, both lenders signed off a term sheet giving them two months of exclusive talks to explore an all-equity acquisition of the Singapore-based business. If successful, Nexo would restructure the company and pursue an expansion in Southeast Asia and India.
Vauld has been thrown a lifeline from Nexo, which is based in London, after it had suspended withdrawals for its more than 800,000 customers. At the time, the crypto lender backed by Coinbase and Silicon Valley billionaire Peter Thiel said it was exploring restructuring options due to “financial challenges” posed by a sharp plunge in cryptocurrencies.
While most crypto lenders were getting caught up in the chaos gripping the crypto world lately, Nexo has offered to acquire rivals. The company also gave a letter of intent offering to buy Celsius, another crypto lending firm, but the latter refused its offer.