Vauld Halts Withdrawals as Nexo Offers to Take Over Embattled Crypto Lender
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Vauld Halts Withdrawals as Nexo Offers to Take Over Embattled Crypto Lender

Vauld has an estimated 800,000 customers — with Nexo declaring that it hopes the acquisition will help it establish deeper roots in Asia.

Vauld Halts Withdrawals as Nexo Offers to Take Over Embattled Crypto Lender

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Vauld has become the latest crypto lender to announce that it's halting withdrawals.

On Monday, the company warned it is facing challenges because of "volatile market conditions" — with customers withdrawing close to $200 million since June 12.

Executives expressed hope that the suspension "will help to facilitate our exploration of the suitability of potential restructuring options."

All of this comes weeks after Vauld had insisted it would "continue to operate as normal," with the company declaring that it had no exposure to Celsius Network or Three Arrows Capital.

In a June 16 statement that hasn't aged well, the company said it had "always maintained a balanced and conservative approach to liquidity management."

Vauld's CEO and co-founder, Darshan Bathija, had added:

"Over the last few days, all withdrawals were processed as usual and this will continue to be the case in the future. We believe that such difficult market conditions will eventually give rise to a new wave of innovation and growth, and we are laser-focused on putting our heads down and building for that future. We remain committed to enabling you to build wealth."

Clearly, this is no longer the case — with some crypto lenders coming under criticism for offering interest rates that are simply too good to be true.

What Now?

Interestingly, Bathija has now announced that Nexo, a rival crypto lender, is now in talks to acquire "up to 100%" of Vauld.

He acknowledged that many customers are nervous about whether they'll receive their funds back, and insisted his team are "working tirelessly to ensure your financials are protected." Bathija added:

"The completion of this transaction is pending due diligence — which both teams are working on as we speak. Vauld has strived to deliver long term value to all customers, and we believe coming under the Nexo umbrella will significantly help achieve this."

Vauld has an estimated 800,000 customers — with Nexo declaring that it hopes the acquisition will help it establish deeper roots in Asia.

Nexo added that it wanted to remove the withdrawal restrictions that are currently in place as soon as possible — and would provide "immediate assistance" to put Vauld on a firmer financial footing.

It's unclear how much Nexo's acquisition is worth, but it's likely going to be a bargain compared with the valuations that such crypto lenders would have commanded just a few short months ago.

When Celsius Network's financial difficulties had first become known, Nexo had also offered to acquire some of its assets, but this deal has since lapsed.

The spectacular unraveling of some of the industry's biggest crypto lenders will likely result in much tougher restrictions being imposed by regulators.

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