#vauld

Estonian authorities have issued a notice of restraint of disposition to crypto lending platform CoinLoan’s Estonian branch. This notice limits CoinLoan’s ability to dispose of assets. A court-assigned liquidator must approve requests for customer withdrawals. According to sources close to the matter, that includes assets of Vauld, another collapsed crypto platform. Basically, this means that…

Vauld has until Feb. 28 to figure out a revival plan

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Crypto lender Vauld secured an extension from the Singapore High Court on Jan. 17 to finalize its revival plan, Bloomberg reported.

Vauld’s creditor protection was set to expire on Jan. 20 and the lender sought to extend the protection until April 21. However, the court granted an extension only until Feb. 28.

Vauld halted customer withdrawals in July 2022 amid a market downturn and was exploring a restructuring plan. Vauld owes around $400 million to its creditors — most of whom are retail investors.

Rival Nexo intended to acquire Vauld, but the deal fell apart when Vauld rejected Nexo’s final proposal on Jan. 5, according to various reports. Shortly after the proposal was rejected, authorities raided Nexo’s Bulgarian office on Jan. 12 over alleged involvement in money laundering and other financial crimes.

Vauld is in the “advanced stages” of discussion with two crypto fund managers to take over the management of its assets, an unnamed source told Bloomberg. The aim is that the fund managers would invest Vauld’s assets and repay creditors with the investment returns.

Journalist at CryptoSlate

Monika first started reading about crypto in 2020 and kept going deeper and deeper down the rabbit hole. While she is always skeptical of new projects, she earnestly believes blockchain and the crypto industry can bring relief to some of the most pressing problems of our time, including financial inequality and transparency. She is a voracious reader, and her fondness for food only rivals her love for books. Monika was previously a reporter at Jumpstart Media and Forkast News.

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'Nexo Has Not Given Up On Its Attempt to Save Vauld' – This is What Happened

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Source: AdobeStock / Andrii Yalanskyi

There is no deal (yet) in the acquisition talks between crypto lender Nexo and its rival Vauld, while the latter has less than a month to present a restructuring plan to creditors. That said, there is contradicting information coming from the two sides.

Several news outlets have reported that the deal has been terminated altogether – though it remains unclear by whom, how, or when. The same reports noted, however, that Nexo reportedly stated that the talks are still ongoing.

In a short statement for Cryptonews.com, the Singapore-based troubled crypto lender Vauld said that,

To provide a very brief summary, our discussions with Nexo have unfortunately not come to fruition. 

Per a Bloomberg report, Vauld said the same thing in an email to creditors on Monday.

While it may imply so, this does not necessarily mean that the entire deal is off – leaving the issue unclear. Cryptonews.com reached out to Vauld and Nexo for further clarification but did not receive a reply by the publishing time.

Nexo’s co-founder and Managing Partner, Kalin Metodiev, told Cryptonews.com that,

“Nexo has not given up on its attempt to save Vauld and help its creditors recover the maximum possible platform funds. However, as an industry leader we are disappointed to see a handful of people with self-serving agendas trying to hijack the narrative and bar the creditors from making their best decision. We were hoping that the bad actors have mostly departed the blockchain space, but it is obvious that, as a community, we still have work to do.”

Meanwhile, Bloomberg wrote, Nexo said that it had submitted a revised proposal for the acquisition to Vauld on December 2, but also wrote in a letter to Vauld creditors that there had been “challenges” during these five months of talks – including “defamation” and “the spread of misinformation on social media.”

Nexo is quoted by the report as writing that,

“We remain dedicated to offering the creditors the most favorable recovery path forward. […] Nexo is determined to continue working for the benefit of the creditors […]”

Meanwhile, Nexo announced earlier this month that it would be leaving the United States, as the company was unable to reach an agreement with the regulators. It would be “phasing out its products and services” in the country “in a gradual and orderly fashion over the coming months,” it said.

Bloomberg called this decision a “stumbling block to an agreement” between the two lenders, as Vauld stated it would leave more than 40% of its US customers without full access to “the benefits of the acquisition.” It further claimed that Nexo did not provide a reply to the questions about this issue.

The potential deal between the two companies was revealed back in July this year. Vauld CEO Darshan Bathija announced that the lender had signed “an indicative term sheet” with Nexo to buy “up to 100% of Vauld.”

As reported in July, after laying off 30% of its workforce the previous month, Vauld suspended all withdrawals, deposits, and trading citing “financial challenges” amid lingering sour market conditions. It then hired advisors to look into a potential restructuring. 

Vauld has a deadline until January 20 to present its restructuring plan. 

That same month, it said that its legal counselor filed an application in the Singapore Courts on behalf of its subsidiary Defi Payments, to seek a moratorium order for a period of 6 months, which would prohibit any proceedings against the company. This was done “as to give Defi Payments and the Vauld management the breathing space it requires to prepare for the intended restructuring for the benefit of all stakeholders,” it stated. 

At the time, Vauld, which was founded in 2018, reportedly had assets worth around $330 million and liabilities worth about $400 million.

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Updated at 11:20 UTC with a comment from Nexo’s Kalin Metodiev. Title edited to reflect the new information.

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Learn more:  – Nexo Eyes Potential M&A Targets as Crypto Market in ‘State of Fear’ – Following BlockFi Bankruptcy, This Company Just Revealed Its Exposure to the Firm – NEXO Next?

– Crypto Chaos Continues as Loans Firm Cuts Withdrawal Limit, 3AC Moves Funds, & Celsius Apparently Pays Maker  – Crypto Lender BlockFi Pauses Platform Activity, Prepares for Bankruptcy Amid FTX Drama

– CoinFLEX Pauses Withdrawals – This Crypto Exchange Just Suspended Withdrawals

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Vauld Approaches Restructuring Deadline, No Progress With Nexo

Earlier this year in July 2022, Singapore-based crypto lender Vauld suspended withdrawals halting all trading activity on its platform. Since then Vauld has been working on its restructuring, the deadline for which shall be coming soon on January 20. Vauld was in discussion with crypto lender Nexo, however, they haven’t come to fruition, said Vauld in an email to all the creditors on Monday,…

Vauld says Nexo acquisition has broken down

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Acquisition talks between Vauld and its potential buyer, Nexo, have broken down, according to a report published by Bloomberg on Dec. 26.

Vauld was one of several cryptocurrency lending and borrowing companies that suspended withdrawals this summer due to a widespread liquidity crisis. The firm halted services on July 4 and filed for creditor protection on July 8.

During that time, Vauld’s competitor, Nexo, took steps to acquire and rescue the failing company. Updates from Vauld suggest that Nexo was still engaging in acquisition talks as recently as Sept. 6, as the two firms extended the due diligence process at that time.

However, in an email obtained by Bloomberg today, Vauld seemed to suggest that acquisition talks have come to an end. In that email, Vauld said that it was “previously exploring a potential acquisition” with Nexo. The firm summarized recent events by stating that past discussions have “unfortunately not come to fruition.”

Nexo, however, suggested in its own statement that it is still cooperating with Vauld. Nexo said that it submitted a revised acquisition proposal on Dec. 2.

In a statement quoted by Bloomberg, Nexo wrote that it is dedicated to “offering creditors the most favorable path forward” and said that it will work to help those creditors.

Nexo noted it has faced other challenges in recent months, seemingly alluding to a smear campaign in which its founders were accused of embezzling charity funds. The company is also discontinuing its services in the U.S. due to regulatory challenges ⁠— a change that has likely consumed its attention in recent months.

Vauld must present a restructuring plan by Jan. 20. As such, there is little time for the two firms to reach an agreement, despite Nexo’s insistence that talks are still open.

Posted In: Bankruptcy, Lending

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India: After WazirX, ED Attaches Assets Worth $46M From Crypto Exchange Vauld

On Thursday, reports underlined that the Indian Enforcement Directorate (ED) blocked bank assets worth Rs 370 crore (around $46 million) that belonged to the troubled crypto exchange Vauld. The news came a week after ED froze the bank account of one of the directors of Zanmai Lab Private Ltd, the operator of the Indian cryptocurrency exchange WazirX. The development also comes amid an ongoing…

Vauld Fights Money Laundering Allegations; Says It Disagrees With Freeze Order

The Enforcement Directorate of India (ED) launched its back to back inquiry over several digital asset exchange platforms. Recently, Singapore based crypto exchange, Vauld, landed under the radar of the anti money laundering agency. Is Vauld cooperating with ED? In a press release, ED mentioned that it conducted searches at the local entity of Vauld in Bangalore. It highlighted that the agency…

India’s anti-money laundering agency has frozen assets worth $46.4 million from the local entity of Vauld for facilitating “crime-derived” proceeds from predatory lending firms in the latest headache for the crypto exchange that filed for protection from creditors last month. Flipvolt Technologies, the India registered entity of Singapore-headquartered Vauld, was used to deposit 3.7 billion…