By
Andy Watson
November 15th, 2023
Nexo has until the close of business today to show its good intentions by responding to Vauld’s queries satisfactorily.
Troubled crypto lender Vauld may be having it rough but that has not stopped it from asking all the right questions from its rival Nexo. This follows after the lender issued a rejection letter to what appears to be Nexo’s final acquisition bid on Wednesday. According to the letter, there are genuine concerns about the finances of Nexo, among many other issues. Part of the letter read:
“We have taken the terms of the Final Nexo Proposal into consideration and further consulted with the COC, and we unanimously do not accept your proposal as it stands.”
Vauld Still Unclear about the Intentions of Nexo
Recall that Nexo submitted its final acquisition bid on December 26. The bid came on the heels of an email that Vauld co-founder and CEO Darshan Bathija wrote to Vauld’s creditors earlier on the same day. In the email, Bathija announced that the deal with Nexo had been called off, citing two reasons for the decision.
Firstly, he said there are concerns about Nexo’s solvency. Also, he said there were worries about how Nexo would handle the claims of U.S.-based Vauld creditors after it announced it was leaving the US market. Meanwhile, Vauld’s US creditors alone make up a whopping 45% of the firm’s assets under management (AUM).
However, Nexo has yet again failed to answer “in clear terms,” any of the two important questions being asked. Now, Nexo has until the close of business today to show its good intentions by responding to the queries satisfactorily.
Nexo on the other hand, believes it proposed the best possible offer to Vauld. It says its deal offers the most value to Vauld’s customers. Although there is no official statement or response to the queries yet, Kalin Metodiev, co-founder and managing partner at Nexo has something to say. He told The Block that Nexo will host a live AMA [ask-me-anything] session sometime next week to address all concerns.
Vauld froze client withdrawals since early July last year. It owes its customers over $400 million. But after receiving a credit protection extension in November, the firm was allowed until January 20 to sort out its financial issues. Vauld is now pushing for another extension, however, seeing as it might not have sorted itself out by then.