Vauld, a troubled crypto lending company based in Singapore, has confirmed halting acquisition talks with Nexo, a rival crypto lending company. The acquisition talks have been halted over the failure of Nexo to respond to the requests for due diligence and assess the firm’s solvency to assure the creditors.

Vauld halts acquisition talks with Nexo

Vauld spoke with CoinDesk on the matter, saying that the lender was previously exploring the potential acquisition by Nexo as part of the crypto lender’s restructuring plan. Vauld noted that its ongoing discussions with Nexo had not reached fruition.

The decision that Nexo has made to halt services in the United States would also negatively affect the customers of Vauld. The move would jeopardize the ability of Vauld customers to make claims after the Vauld bankruptcy proceedings if the acquisition deal had gone through.

Nexo also failed to provide the customers of Vauld with an exit option, which was crucial as part of the restructuring efforts. The deal in question ended barely five months after Nexo signed a partnership deal with Vauld about a possible acquisition after the crypto lender filed for bankruptcy.

Vauld has not addressed what the effects of the termination of this partnership deal will be. Moreover, the crypto lender is undergoing restructuring, and there is no clarity on whether the termination of the agreement deal will have an impact. The acquisition failed less than a month before the company’s deadline

On the other hand, Nexo is not giving up on its attempts to close the acquisition deal. The co-founder and the managing partner at Nexo, Kalin Metodiev, said that Nexo wanted to help Vauld creditors to recover the highest possible amount of funds. The two companies have not reached a mutual agreement to end the deal, and this was needed for the termination to become formal.

Vauld’s bankruptcy

The troubles facing the Vauld exchange started after the platform halted deposit, withdrawal, and trading services in July this year. At the time, the company said it would restructure its operations and filed for bankruptcy protection in Singapore.

Vauld is a cryptocurrency lending company that was founded in 2018. The crypto lending company offered some of the highest interest rates on crypto deposits. It also allowed borrowing against cryptocurrencies and other trading services.

In the bankruptcy filing that was made in July, Vauld revealed that it owed $402 million to its creditors. 90% of the amount was owed to retail traders. After the company filed for bankruptcy protection, around $46.4 million worth of assets belonging to the company were frozen by Indian authorities.