• Nexo sent an open letter to Vauld creditors after Vauld announced it had suspended all withdrawals, trading, and deposits on its platform and had filed for creditor protection.
• Nexo’s letter noted that the negotiations for the acquisition had been slow and challenging and that terms of the deal had been “misleading”.
• Kroll, Vauld’s financial adviser, has not yet responded to a request for comment.
Crypto lender Nexo has sent an open letter to creditors of Singapore-based rival Vauld, seeking to buy the company after Vauld announced it had suspended all withdrawals, trading and deposits on its platform, filed for creditor protection, and was looking at restructuring options.
The letter, sent Monday, comes amid conflicting assessments of the acquisition process. Vauld said earlier in the day that the deal announced in July had “not come to fruition.” Nexo responded by saying talks were continuing and it still hoped to complete the purchase. Vauld has until Jan. 20 to work on a restructuring plan.
According to the open letter, a copy of which was sent to CoinDesk, Nexo had presented a revised proposal on Dec. 2. It said that the team negotiating the transaction “faced daily challenges, such as receiving slow and incomprehensive financial and legal due diligence information,” and that terms of the deal presented to Vauld creditors were “misleading.” The letter was signed by Nexo Management and sought to create transparency to Vauld’s creditors, which they said had been insufficient, regarding the merits of Nexo’s acquisition plan, as well as to contribute final improvements to some of the proposal’s commercial terms based on feedback from Vauld’s community.
Kroll, Vauld’s financial adviser, has yet to respond to a request for comment. However, the fact that Nexo is continuing to negotiate and express a desire to complete the purchase may be a sign of progress. If a successful deal is reached, it could provide much needed relief to Vauld’s creditors and customers.
Nexo’s open letter serves as a reminder that the crypto industry is still a relatively young and unregulated space where deals are often subject to unexpected changes. As more companies enter the space and regulations become more stringent, it is important that all parties involved in a deal remain diligent and transparent in the process.