Cryptocurrency lender Vauld rejected Nexo's revised acquisition proposal and is seeking to terminate the negotiation between the two firms, saying the deal "would not be in the best interests" of its creditors.

"We have sought a mutual agreement with Nexo to terminate the existing exclusivity arrangements and we are continuing our active engagement with the shortlisted fund managers in developing a viable strategy that would best serve the creditors’ interests," Vauld said in a statement Thursday.

The two firms started talks in July after Vauld suspended all withdrawals, trading and deposits on its platform and filed for creditor protection in Singapore. It has until Jan. 20 to work on a restructuring plan. The talks looked to be over at the end of last year, when Vauld said the acquisition had been canceled. Nexo, however, responded that it was not calling off the deal and took the step of writing an open letter to Vauld's creditors.

(By Jamie Crawley)