Nexo, a London-based bitcoin loan service, is going to purchase Vauld, a cryptocurrency platform that recently shut down operations due to ‘financial issues.’
“I understand that a lot of our customers are nervous about your funds. We are working tirelessly to ensure your financials are protected. We have signed an indicative term sheet with Nexo, to acquire up to 100 per cent of Vauld,” Darshan Bathija, CEO,Vauld, said in his tweet.
This transaction is still subject to due diligence, which both parties are working on. Bathija further stated that Vauld has sought to provide long-term value to all clients and feels that joining the Nexo family will greatly assist them achieve this.
Nexo, in a tweet had said, “in a consolidation effort aimed at the betterment of the space, as well as the strengthening of our presence in Southeast Asia, we’ve entered exclusive talks with Vauld for the full acquisition of the Singapore-based company.”
This comes after Vauld banned all withdrawals, trading, and deposits on the site due to ‘financial difficulties.’ The platform stated that it is examining and analysing all conceivable options, including prospective restructuring options, that would best protect Vauld’s stakeholders’ interests.
The company in a blog post announced that they are facing financial challenges despite their best efforts. Bathija in the post wrote, “This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate.”
Since June 12, 2022, Vauld has logged over $197.7 million in consumer withdrawals. The platform ascribed the drop to the cryptocurrency market’s decrease, which was precipitated by the collapse of Terraform Lab’s UST stablecoin, the Celsius network’s suspension of withdrawals, and Three Arrows Capital’s default on their loans.
Users panic as Vauld suspends crypto withdrawals
“In Vauld, I have 25 Bitcoin.” “I have invested my entire family’s lifetime resources,” John Mayer, 37, a Vauld user from the United States, told indianexpress.com during a conversation on a social media platform.
Mayer is one of several investors who are desperate for help after Vauld, a prominent cryptocurrency lending platform, froze withdrawals and deposits.
The corporation blamed the decision on the uncertain market conditions!
Vauld now joins the expanding list of Decentralised Finance (DeFi) companies that have ceased trading, making it difficult for hundreds of thousands of investors to liquidate their crypto-assets.
According to the company, the decision to suspend withdrawals comes after users pulled $197.7 million over the last three weeks that saw cryptocurrency prices plummeting since June 12, 2022.
Vauld said it has hired financial and legal advisers to analyse options, including a potential restructuring!