Cryptocurrency lender Nexo has terminated discussions of a potential acquisition of its rival crypto lender Vault, which has until January 20 to present a restructuring plan to creditors. The deal fell through after six months of dialogue.
In an email Vauld founder and CEO Darshan Bathija sent to the firm’s creditors, he says that discussions with Nexo “have unfortunately not come to fruition.” The firms had been in discussions since early July, when Vauld halted client withdrawals after facing a liquidity crunch.
In a letter to Vauld creditors, Nexo cited “challenges” during the talks, including “defamation” and the “spread of misinformation on social media.” The firm added it remains “dedicated to offering the creditors the most favorable recovery path forward,” and to “working for the benefit of the creditors and to support the development of the blockchain ecosystem.”
The agreement was partly blocked over Nexo’s recent announcement it will phase out service in the US. Vauld said more than 40% of its US customers wouldn’t have access to the benefits of the acquisition.
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- Source: https://www.cryptocompare.com/email-updates/daily/2022/dec/27/
