Vauld ends potential acquisition deal with Nexo after 5 months of negotiations: report

Cryptocurrency lender Vauld has officially canceled its potential acquisition by rival Nexo - a deal originally announced five months ago. After the initial agreement to explore the merger and less than a month before Singapore-based Vauld is due to present a restructuring plan, talks are now believed to have stalled.

What happened: Negotiations are still ongoing, despite earlier talks about a potential acquisition by Nexo breaking down, CoinDesk reported, according to a person familiar with the talks. For the agreement to be canceled, both parties must agree, which has not yet happened.

"We were previously exploring a potential acquisition by Nexo as part of the proposed restructuring plan," Vauld told CoinDesk in a private message on Twitter. "To sum up very briefly, our discussions with Nexo have unfortunately been unsuccessful."

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Vauld has gone through a difficult period, having suspended all withdrawals, transactions and deposits on its platform, as well as laying off 30% of its staff. In July, the company filed for creditor protection in Singapore, with an affidavit stating that the company owed $402 million to its creditors, 90% of which came from deposits from retail investors. To make matters worse, Indian authorities froze assets worth $46.4 million.

"Nexo has not given up on its attempt to save Vauld and help its creditors recover as much platform funding as possible," said co-founder and managing partner Kalin Metodiev .

Vauld and Nexo did not respond to Benzinga's request for comment at press time.Read more: Bitcoin, Ethereum, Dogecoin Trade Muted Over the Holidays: Analyst on What to Expect as New Years Approaches

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