Cryptocurrency lender Vauld has officially canceled its potential acquisition by rival Nexo — a transaction that was initially announced five months ago. After the initial agreement to explore the merger and less than a month before the Singapore-based Vauld had to present a restructuring plan, the talks have now reportedly stalled.
What Happened: Negotiations are still ongoing, despite earlier talks of a potential acquisition by Nexo falling through, CoinDesk reported, based on a person familiar with the talks. For the deal to be canceled, both parties must agree, which is yet to happen.
“We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan,” Vauld told CoinDesk in a private message on Twitter. “To provide a very brief summary, our discussions with Nexo have unfortunately not come to fruition."
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Vauld has been facing a difficult time, having suspended all withdrawals, trading and deposits on its platform, as well as laying off 30% of its staff. In July, the company filed for creditor protection in Singapore, with an affidavit stating the company owed $402 million to its creditors, 90% of which originated from individual retail investor deposits. To make matters worse, Indian authorities froze assets worth $46.4 million.
“Nexo has not given up on its attempt to save Vauld and help its creditors recover the maximum possible platform funds," co-founder and managing partner Kalin Metodiev was quoted as saying.
Vauld and Nexo didn't respond to Benzinga’s request to comment at press time.
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