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Nexo, which is based in London, said it would buy up to 100% of
Vauld and "reorganize its future operations with the aim to
accelerate its deeper presence in Asia." It did not say when the
deal would close.
Singapore-based Vauld said on Monday that it had suspended
withdrawals for its more than 800,000 customers.
Nexo aims to "provide immediate assistance and alleviate
withdrawal limitations put in place on Vauld’s platform," the
statement said.
Nexo did not say how much it planned to pay for Vauld.
Acting as unregulated banks for the crypto world, crypto lenders
take in deposits from retail investors, offering returns as high
as 20%, and lend digital tokens to borrowers.
Crypto lending has boomed over the last two years but has run
aground in recent months following a crash in cryptocurrency
prices and the collapse of major token TerraUSD in May.
U.S. lender Celsius, which had more than $11 billion in assets,
stopped allowing customer withdrawals and transfers in June,
citing extreme market conditions. Another lender, Voyager,
suspended withdrawals last week.
Vauld's CEO Darshan Bathija told a newspaper in May
https://www.thehindubusinessline.com/
money-and-banking/cryptocurrency/crypto-exchange-vauld-eyes-five-fold-aum-growth-to-5-billion-this-fiscal-ceo/article65385328.ece
that it had $1 billion in assets under management.
In a blog post on Monday
https://www.vauld.com/blog/
corporate-statement, Vauld said it was facing "financial
challenges" due to volatile market conditions, "the financial
difficulties of our key business partners inevitably affecting
us" and customers having withdrawn around $200 million since
June 12.
(Reporting by Elizabeth Howcroft, Editing by Louise Heavens and
Bernadette Baum)
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