On the 4th of July, the cryptocurrency exchange Vauld had to suspend deposits, withdrawals, and even trading on its platform. After all the transactions were ceased, Vauld declared that they would sign an indicative sheet with Nexo for acquisition.
In a tweet, Darshan Bhatija, the CEO and co-founder of Vauld, talked about how they expressed their deep regrets for putting their customers in such a stressful situation. But, he further assured the clients of Vauld that they should rest assured as they are continuously working towards keeping the funds of the customers safe.
I understand that a lot of our customers are nervous about your funds. We are working tirelessly to ensure your financials are protected. To that end, we've signed an indicative term sheet with @Nexo to acquire up to 100% of Vauld: https://t.co/HrnQO7J64f
— Darshan Bathija (@darshanbathija) July 5, 2022
The Tweet also stated that Nexo was overtaking 100 percent of Vauld’s share, and the transaction is due diligence. Vauld has served its customers and provided long-term value, and now by coming under Nexo’s banner, they are striving to do the same.
What was Nexo’s reaction to the matter?
Nexo co-founder Antoni Trechev announced that the company would provide Vauld with a 60-day term sheet with a limited exploratory period during which the due diligence process would be carried out.
Nexo is going to have a look at the cryptocurrency-based exchange’s assets and then decide whether to offer immediate liquidity or completely restructure Vauld to repay its clients.
Since June 12th, Vauld has been witnessing its clients withdrawing their funds of $197.7 million as the cryptocurrency market witnessed a downside rally. The crypto investors were particularly alarmed after the UST stablecoin of Terraform Lab collapsed, followed by the discrepancy in loans by 3AC and the pausing of withdrawals by Celsius (another crypto exchange).