Embattled lending platform Vauld has signed an indicative term sheet with Swiss crypto lender Nexo for the latter to acquire up to 100% of the Singapore-headquartered firm, according to an announcement on Tuesday.
For Nexo, the move is “aimed at the betterment of the space, as well as the strengthening of our presence in Southeast Asia,” it said in the announcement.
Read more: Trouble Brewing at Singapore Crypto Lending Startup Vauld
The completion of this transaction is pending due diligence, which both teams are working on currently, Valud co-founder Darshan Barthija said on Twitter. Nexo could restructure or refinance Vauld depending upon how the due diligence process goes, The Block reported.
The news comes just a day after Vauld said it was suspending all withdrawals, trading and deposits citing “financial challenges” at the firm. According to The Block sources, the hole in Vauld’s balance sheet is worth “mid to high double-digit millions.”
Founded in 2018, Vauld counts Peter Thiel, Pantera and Coinbase among its investors and has raised US$27 million in a Series A round. The company currently has 100+ employees.