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The pair had signed an initial agreement five months ago but Vauld has now rejected Nexo’s updated terms and conditions.
Vauld halted withdrawals back in July 2022, citing a liquidity crisis and volatile market conditions. It then signed an indicative term sheet with Nexo for the latter to acquire up to 100% of the Singapore-headquartered firm.
In a private message on Twitter, Vauld reportedly said, “We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan. To provide a very brief summary, our discussions with Nexo have unfortunately not come to fruition.”
However, talks are still taking place and the firm’s moratorium has been extended to 20 January 2023, giving the two firms more time to come to an agreement.
“Nexo has not given up on its attempt to save Vauld and help its creditors recover the maximum possible platform funds,” Nexo co-founder and managing partner Kalin Metodiev said in an email.
Vauld owed $402 million to its creditors according to an affidavit on 8 July 2022. 90% of the debt orginated from individual retail investor deposits. Indian authorities froze assets worth 3.7 billion rupees (US$46.4m) a month after it field for creditor protection.
On 5 December, Vauld announced it would “phase out products and services” from the US, citing “a lack of regulatory clarity.”
“As part of our cooperative approach with regulators, during the course of 2021 and 2022, we have off-boarded clients from the states of New York and Vermont and have suspended new registrations for all US clients for our Earn Interest Product to meet regulators’ expectations,” it stated.