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Nexo starts process to potentially acquire troubled crypto lender Vauld

Quick Take

  • Nexo has signed an indicative term sheet with rival crypto lender Vauld.
  • London-based Nexo will begin due diligence and plans to acquire up to 100% of the troubled firm.
  • Client withdrawals will remain halted for now. 

Crypto lender Nexo has started a process to potentially acquire rival Vauld after the latter abruptly halted customer withdrawals on Monday.

Sharing the news exclusively with The Block on Tuesday, Nexo said it has signed an indicative term sheet with Vauld with a plan to acquire up to 100% of the Singapore-based company. The term sheet grants London-based Nexo a 60-day exclusive exploratory period in which it will conduct due diligence.

"We have to see what exactly is on their books and it's going to take a little while," Nexo co-founder Antoni Trenchev told The Block in an interview. "But since we have the exclusive exploratory period, we are the only ones looking at them right now."

Vauld is struggling financially, as The Block was first to report on Monday. The crypto trading and lending platform suspended all withdrawals, trading and deposits and hired legal and financial advisors for potential restructuring options.

Client withdrawals will remain halted for now.

Trenchev said Nexo could restructure or refinance Vauld depending upon how the due diligence process goes. That is, if Vauld has some assets staked for longer periods or has made investments for a long duration, Nexo could take those and instantly provide liquidity. On the other hand, if their assets have been lost, Nexo could potentially replenish them if it makes sense, said Trenchev.

"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.

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