A planned takeover by rival Nexo has been scrapped, according to cryptocurrency lender Vauld, almost five months after the parties initially agreed to examine the possibility of a merger and much less than a month first before the Singapore-based target was due to develop a reconstruction and rehabilitation.
Nevertheless, based on a person familiar with the negotiations, talks are still ongoing. The person claimed that in order for the arrangement to be canceled, there must be implied agreement, which is not the situation right now.
“We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan,” Vauld stated in a private message on Twitter. “To provide a very brief summary, our discussions with Nexo have unfortunately not come to fruition.”
According to Nexo, the agreement is still ongoing.
“Nexo has not given up on its attempt to save Vauld and help its creditors recover the maximum possible platform funds,” Kalin Metodiev, a managing partner and co-founder, stated in an email.
As it considered reorganization alternatives, Vauld halted all withdrawals, trading, and deposits on its platform, CoinDesk reported in July. The firm has until January 20 to complete a restructuring plan after filing for bankruptcy protection earlier that month in Singapore. Firm said in June that it will reduce its workforce by 30%.
The firm owed $402 million to its creditors, 90% of which came from deposits made by individual retail investors, according to an affidavit dated July 8. Indian authorities placed 3.7 billion rupees ($46.4 million) worth of assets under a freeze a month after the company requested bankruptcy protection.
Vauld cited Nexo's failure to react to proper research requirements for a solvency analysis that would have given its creditors confidence in explaining the termination of the deal. Additionally, it included Nexo's Dec. 5 notice that it was discontinuing service in the U.S., which would have left Vauld's customers in the nation without a mechanism to get their claims processed. Thirdly, the plan lacked an early exit option for Vauld creditors, which the company claimed was crucial for a successful reorganization.
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