Popular Crypto lending platform Nexo decided not to acquire struggling Crypto lending platform Vauld.
Nexo is a popular Crypto lending platform, which is standing strongly in this Crypto market uniquely. This year, the Crypto market faced a significant downfall and that situation resulted in the bankruptcy of several crypto lending platforms like Voyager Digital, Genesis Global Trading, BlockFi, Celsius Network, etc. Here Nexo standing strongly because of its safe back-end financial operations & financial exposure to good companies.
On 26 Dec, TheBlock report confirmed that Nexo decided not to acquire Indian Crypto lending platform Vauld, after 6 months of a long conversation.
Reportedly, Darshan Bathija, founder and CEO of Vauld, sent an email to TheBlock regarding this deal termination and confirmed that the potential deal has fallen between these two Crypto companies.
The Vauld email stated:
“We have since 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.”
Initially, The bad situation of Vauld came to light in July of this year when the platform suspended fund withdrawal for the customers.
The report noted that there are many reasons why the deal has been terminated. First of all, Vauld provides services to many US & Indian crypto investors but opposite of this thing Nexo already decided to quit the US because of unclear crypto regulatory policies.
Secondly, Vauld lost a significant amount of funds in the Terra (Luna) collapse event. And also Vauld’s significant amount of funds is stuck on the bankrupt crypto exchange FTX.
Also the Indian enforcement agency ED seized huge amounts of funds from Vauld over connection with money laundering activities related to some Chinese gambling/loan apps & also this Crypto lender has huge loan receivables from Amber Group.
In short, Vauld is in that phase where it is facing problems from every side & there are very few chances to get out of this situation.