According to multiple reports, Vauld is a crypto lending company that turned down an offer from Nexo. Nexo is its biggest competitor.
Darshan Bathija was Vauld’s CEO and co-founder. He wrote to Nexo privately stating that his company would reject the final proposal from Nexo.
Vauld said that Nexo hadn’t provided an assessment of Nexo’s solvency. Vauld was concerned about Nexo’s treatment of U.S.-based Vauld customers. Nexo had declared in December that it would no longer serve residents of the country. Vauld concluded that Nexo’s revised proposal had not been guaranteed.
Bathija wrote the following in her rejection letter:
“We have reviewed your Final Nexo Proposal, consulted the committee of creditors, and unanimously disapproved it as is.”
Nexo’s offer to acquire Vauld has been under review since last July. Vauld was one of many companies to file for bankruptcy following the collapse of Celsius. Nexo offered assistance.
Numerous roadblocks in the months that followed prevented the planned deal from being completed. Nexo revised its proposal numerous times. Just hours before Vauld’s final rejection, Nexo published an open letter.
Nexo called the proposal “the only path forward” and “the right way forward”.
Vaulted customers were onboarded as “New Nexo Customers” and any owing balances would be transferred to accounts called “New Nexo Accounts.”
Yesterday’s letter stated that Nexo intends to enforce a clause that will require Vauld to pay $20 million. Both companies signed the initial 60-day exclusivity contract, but it was extended by Nexo for 30 days until October 2022. It is unclear if the companies extended their agreement or if Nexo believed Vauld broke it earlier.
In last month’s reports, it was unclear whether Nexo would pursue the deal or Vauld. While Vauld claimed that negotiations were over, Nexo stated that it was open to exploring a deal and had submitted an updated proposal.
This week’s developments have resolved the conflict. Vauld now works with Nexo-listed fund managers. Vauld owed its customers over $400 million due to the collapse in crypto prices.
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