Nexo Terminates Potential Deal With Troubled Crypto Lender Vauld

Crypto lender Nexo, which was in talks with rival crypto lender Vauld to potentially acquire it, has terminated the discussions.

The source said there are a couple of reasons why the potential deal didn't go through. These include Vauld losing a significant amount in the collapsed Terra ecosystem, Indian authorities seizing its assets, funds stuck on the bankrupt crypto exchange FTX and huge loan receivables from Amber Group. Further, Vauld has many customers in the U.S. and Nexo recently announced its plans to leave the country, so the potential deal did not make sense for Nexo, the source added.

Vauld's financial hole currently stands at $98 million, per the email. "Overall, in the period from 1 August 2022 when we last provided an update of the financial position of the Company, the net deficit or 'gap' has increased from USD81m to USD98m," the email reads. "This is largely a result of a loss in value due materially to: (i) FTX bankruptcy proceedings where we had a net exposure of USD8.8m; and (ii) depreciation of token prices relative to stables by approximately 24%."

(By Yogita Khatri)

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