Crypto Lender Company Vauld discovered a loss in their revenue due to which they initiated a claim for security against lenders in July this year and they also made up a contract with their rival company Nexo in the same year. Vauld went to work on a restructuring plan with Nexo.
The company Nexo has failed to respond to requests for a comprehensive due diligence exercise, including an assessment of Nexo’s solvency, or otherwise what measures to provide creditors with greater assurance in the event of Nexo’s insolvency may be agreed upon.
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Vauld and Nexo Crypto Deal Negotiation
Vauld has informed us that their terms didn’t fall into the right place with Nexo and the contract didn’t end up in a fruitful notation. Vauld crypto firm applied for creditor protection in Singapore and has been in talks with Nexo for protecting them since then.
Vauld stated that Nexo had not responded to due diligence requests to assess Nexo’s solvency, which would provide assurance to its creditors. It also mentioned Nexo’s Dec. 5 announcement that it was discontinuing service in the United States, potentially leaving Vauld’s customers without a way to handle their claims in the country without a way to have their claims handled. A third point was that the proposal failed to provide Vauld creditors with an early exit option, which the company claimed was critical to a successful restructuring.
Crypto Lender Nexo's Plan to Acquire Rival Vauld May be Halted #Crypto #Nexo #cryptocurrencies #NFTs #blockchaintechnology #metaversecrypto pic.twitter.com/NkwsC6PFIK
— Crypto RockStone (@CryptoRockStone) December 28, 2022
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Vauld has said that Nexo hasn’t responded proactively over solvency assessment so that they can assure credibility for their users. The company has also failed in promising an early exit to the Vauld consumers resulting in the failure of restructuring. However, Vauld has informed us that the negotiation still remains in practice as they might interact with Nexo soon again.