Nexo Aims to Acquire Vauld, Who Paused Withdrawals Monday Citing Market Volatility

Nexo, a digital assets institution and crypto platform, plans to acquire Vauld, a crypto trading and lending platform, after signing an indicative term sheet according to an announcement from Nexo on Tuesday. 

This comes only one day after Vauld stopped customer withdrawal from the platform, which is unfortunately something that the industry is getting more accustomed to by the day. Darshan Bathija, the CEO of Vauld, wrote in a blog that the halt on customer services was a result of a combination of circumstances coupled with the volatility in the market. 

Now Nexo has signed an indicative term sheet with Vauld, which grants Nexo a 60-day exclusive exploratory for their intended acquisition of the crypto trading and lending platform. 

Nexo plans to acquire up to 100% of the Singapore-based company with the aim to deepen its presence in Southeast Asia and Asia as a whole. Nexo also plans to immediately provide assistance to alleviate withdrawal limitations of Vauld’s platform. 

“Difficult times always teach us the importance of business model viability and prudent risk management,” Nexo’s head of corporate finance and investments, Tatiana Metodieva said. “It is inevitable that the industry leaders will navigate out of the current crisis on the foundation of competitive strength, discipline, and uncompromising responsibility to customers.” 

The current crisis Metodieva referenced is the ongoing volatility, insolvency and overall downward trajectory that has plagued the crypto market. Three Arrows Capital (3AC), Voyager and Celsius have experienced insolvency, with 3AC declaring bankruptcy last Friday. In addition, Bitcoin is sub $20,000 while Ethereum is below $1,100. 

Twitter user ChainLinkGod.eth’s June 28-prediction aged well given the recent series of events. 

“If you have any assets on @Nexo, I highly recommend you withdraw immediately,” the account tweeted. “From their Zeus Capital short and distort scheme in 2020 to their social media astroturfing that is ongoing to this day. I’ve never before seen an organization with so many red flags.” 

Author: Tyler Irvin

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