Nexo Abandoning Agreement To Acquire Vauld

Key Points:

• The potential acquisition of the crypto lending platform Vauld by Nexo has been terminated.
• Early in July of this year, Vauld stopped allowing client withdrawals. Following that, the crypto lender began conducting due diligence and had discussions with Vauld about a potential acquisition.
• An acquisition negotiation’s submission of a due diligence report is one of the negotiations. The report demonstrates a thorough analysis of the company conducted prior to the merger. Nexo failed to submit the required diligence.

The prospective acquisition of the crypto lending platform Vauld by Nexo has been halted.

Vauld’s founder and CEO, Darshan Bathija, stated in an email to the company’s creditors that conversations with Nexo have regrettably fallen through.

Further investigation finds that Nexo attempted to buy BlockFi and Celsius, two additional crypto companies. However, those transactions also failed. In the end, the businesses turned down the offer. Vauld is the third company to leave the crypto lender in less than six months.

An acquisition negotiation’s submission of a due diligence report is one of the negotiations. The report demonstrates a thorough analysis of the company conducted before the merger. According to an email from Vauld management to customers, Nexo failed to submit the required diligence.

Early in July of this year, Vauld stopped allowing client withdrawals. After that, Nexo and Vauld began discussing a possible acquisition and conducting due diligence. Bathija revealed in a tweet on July 5 that the crypto lender would be purchasing Vauld:

The possible acquisition was put on hold after the due diligence phase was prolonged twice. According to reports, Nexo twice presented Vauld with the potential agreement terms, but Vauld felt that the proposal would not be in the best interests of all the creditors. Vauld also believed the crypto lender wasn’t being honest enough about its financial situation.

Furious Vauld investors are blaming Nexo for their current predicament, and the $300 million market cap crypto powerhouse may soon face a bank run.

Customers of Vauld were expecting that this acquisition would protect their assets while the company might disintegrate.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News