Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Troubled Crypto Lender Vauld Says It May Get Bought by Nexo

Published 07/05/2022, 07:35 AM
Updated 07/05/2022, 07:36 AM
© Reuters Troubled Crypto Lender Vauld Says It May Get Bought by Nexo

© Reuters Troubled Crypto Lender Vauld Says It May Get Bought by Nexo

(Bloomberg) -- Vauld, the Singapore-based crypto lender that announced a freeze on withdrawals on Monday, said it has signed a tentative agreement to be acquired by rival Nexo. 

“We are working tirelessly to ensure your financials are protected,” Vauld Chief Executive Officer Darshan Bathija said in a tweet on Tuesday. “To that end, we’ve signed an indicative term sheet with @Nexo to acquire up to 100% of Vauld.”

Vauld became the latest among several crypto lenders to resort to emergency measures to stay afloat after a $2 trillion digital-asset market rout sapped their finances. The turmoil has produced an opportunity for better-capitalized companies like billionaire Sam Bankman-Fried’s FTX to swoop in and buy assets on the cheap. 

Read more: FTX US Signs Option to Buy BlockFi in Crypto Sector Shakeup

Bathija didn’t immediately return calls seeking comment. The Block earlier reported that Nexo was in the process of potentially acquiring Vauld, citing Nexo co-founder Antoni Trenchev. A spokesperson for Nexo confirmed the discussions. 

Nexo in June said it was preparing an offer for assets of Celsius Network Ltd., shortly after Celsius announced a freeze on withdrawals. That offer was open for a week and lapsed after Celsius didn’t want to make a deal, the Block said. Celsius on June 30 said it’s exploring options such as “strategic transactions” as well as restructuring its debt. 

The speed of the market meltdown has ensnared crypto lenders large and small -- with some, like Vauld, freezing withdrawals just weeks after ensuring customers that their business was sound. On June 16, Bathija said on Vauld’s blog that “Over the last few days, all withdrawals were processed as usual and this will continue to be the case in the future.”

Regulators are taking note of the crypto industry’s trouble and say they’re moving to bolster guardrails. Hours after Vauld’s announcement on Monday, Singapore’s central bank said it was considering new crypto rules to protect consumers. 

“These may include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies,” Monetary Authority of Singapore Chairman Tharman Shanmugaratnam said in a written response to a question from parliament.

©2022 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.