Cryptocurrency lending company Nexo has begun a comprehensive review process in its acquisition of rival Vauld after the platform abruptly blocked users from withdrawing funds earlier in the week.
According to The Block’s source, Nexo said it has signed a designation with Vauld as part of a plan to buy back up to 100% of the Singapore-based company. The provision gives Nexo 60 days to learn more about Vauld’s internal situation in order to conduct due diligence.
Nexo co-founder and CEO Antoni Trenchev said:
“Our most important task now is verifying whether a Nexo-led overhaul can see the firm thrive again and whether it can be profitable within our business model and company culture.”
In fact, Vauld is facing a lot of financial difficulties, the platform has announced to stop all withdrawals, transactions, and deposits, and hire legal and financial advisors for the restructuring process. company structure.
Co-founder and CEO Darshan Bathija wrote on the microblogging platform Twitter on Tuesday.
Although Vauld founder Darshan Bathija declined to comment on the loss on the company’s balance sheet at the time of the incident, according to several sources familiar with the matter, Vauld’s loss was around $100 million.
“Operating under the Nexo umbrella puts us instantly in a position of strength to continue the execution of our fiduciary obligations to our customers and at the same time to execute upon both companies’ ambitious roadmaps, regardless of the market conditions.”
Vauld isn’t the only troubled company Nexo has approached. Last month, the platform offered to buy back the assets of the biggest player in the Celsius lending space. The offer was open for a week and lapsed because Celsius was not interested in doing a deal offered by Nexo.
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