Nexo has terminated the potential acquisition of crypto lending platform Vauld, The Block reports.
Darshan Bathija, founder and CEO of Vauld, said in an email sent to the company's creditors, "our discussions with Nexo have unfortunately not come to fruition."
Vauld halted client withdrawals in early July this year. After that, Nexo had been in discussions with Vauld about a potential acquisition, and started due diligence. After the due diligence period was extended twice, the potential acquisition is terminated. It's reported that Nexo presented the potential deal terms to Vauld twice, but the latter believed that Nexo's proposal would not be in the best interests of all the creditors. In addition, Vauld thought Nexo wasn't transparent enough about its financial condition.
Next, Vauld plans to select a fund manager to manage customer assets. The email said, "in our search process, we identified six potential candidates as fund managers, received proposals from four, and following initial discussions and review, shortlisted two potential fund managers. We are in the course of developing the proposed strategies and mandate, in consultation with creditors with a view to agreeing terms with the final shortlisted fund manager candidate in the new year."