Nexo Signed an Indicative Term Sheet with Rival Crypto Lender Vauld
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The term sheet provides a 60-day exclusive exploration time for London-based Nexo, during which it will perform due diligence. The cryptocurrency loan and trading platform Vauld is having financial difficulties; as a result, it has frozen all withdrawals, trades, and deposits and appointed legal and financial advisers to look into possible restructuring possibilities.
Client Withdrawals Currently Suspended
According to Nexo's co-founder Antoni Trenchev, based on the outcome of the due diligence procedure, Nexo may decide to restructure or refinance Vauld. If Vauld has investments or assets staked for more extended periods, Nexo might seize those and immediately give liquidity. Trenchev added that if their assets have been lost, Nexo might be able to replace them. Nexo has contacted other struggling businesses in addition to Vauld.
Nexo approached to purchase the assets of working rival Celsius last month. Due to Celsius' lack of interest in striking a deal, the offer expired after being open for a week. Vauld, however, appears intrigued.
"Operating under the Nexo brand puts us immediately in a position of strength to keep up with our fiduciary duties to our clients and, at the same time, to carry out both firms' ambitious roadmaps, regardless of the status of the market," according to a statement from Bathija.