- Nexo intends to help the creditors of Vauld to recover as much of their funds as possible.
- Vauld called off the acquisition by Nexo merely five months after signing the deal.
- Nexo recently announced its departure from the United States by phasing out its products and services.
Nexo has been among some of the companies to emerge unscathed from the FTX collapse, which wiped out over $250 billion from the crypto market. However, not only did it protect itself, but it has also been attempting to save other companies “in-need” for a while as well, alas to no avail.
Nexo – Vauld agreement
Before the FTX fallout, the crypto market faced its first contagion of the year in Q2 and Q3 this year, during which companies like Voyager and Celsius went bankrupt. Among them was crypto lending platform Vauld which filed for bankruptcy in July this year.
Soon after, the company signed an agreement with its rival Nexo wherein the latter was set to acquire Vauld and pull it out of its bankruptcy. Five months after the initial deal, Vauld has now decided to call off the potential acquisition citing no particular reason. In a statement to Coindesk, the company stated,
“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.”
On the other hand, Nexo did not declare the deal’s cancellation but is attempting to continue talks. The crypto lender is attempting to save Vauld as well as help the bankrupt platform’s creditors recover their funds.
Nexo at the crosshair
Back in September, Nexo was reported to be in the crosshair of regulatory authorities after California initiated an investigation against the company. The California Department of Financial Protection and Innovation (DFPI), along with seven other state securities regulators, headed the inquiry citing the lack of registration in the state.
Following this, earlier this month, Nexo announced that it would be departing from the United States. The company cited fallout with the regulators as the reason behind the announcement, stating it would slowly phase out its products and services over the next few months.