Crypto lender Nexo in talks to acquire Vauld
- Ryan Lawler, author of Axios Pro: Fintech Deals
Illustration: Gabriella Turrisi/Axios
Vauld, a Singapore-based crypto lending startup, is in talks to be acquired by London-based Nexo, as consolidation hits the nascent industry.
Why it matters: After a contagion of bad debt has spread across the crypto lending space, we’re seeing some well-capitalized players making opportunistic acquisitions.
Driving the news: Vauld founder Darshan Bathija confirmed on Tuesday that it had signed an indicative term sheet with Nexo to acquire up to 100% of the company.
- On Monday, Vauld announced it had suspended all withdrawals, trading, and deposits on its platform.
- In its statement, the company said customers had withdrawn nearly $200 million since June 12, when the TerraUSD stablecoin collapsed.
Context: Vauld is just the latest crypto firm to acknowledge financial troubles due to unpaid debts and heavy customer withdrawals.
- Crypto brokerage Voyager Digital recently suspended all trading on its platform.
- Crypto lenders Celsius and Babel Financce have hired financial advisers and are evaluating the potential of initiating bankruptcy proceedings.
- And Three Arrows Capital — the crypto hedge fund at the center of the industry's debt crisis — filed for Chapter 15 bankruptcy on Friday.
On Friday, BlockFi announced a deal with Sam Bankman-Fried’s FTX giving the latter the option to acquire the troubled crypto lending startup “at a variable price of up to $240M based on performance triggers.”
- BlockFi had previously raised $350 million at a $3 billion valuation in March 2021.
Of note: In a Twitter thread last month, Nexo offered to acquire “any remaining qualifying assets of Celsius."
The big picture: This is just the start of the unwinding and reorganization of struggling firms across the crypto ecosystem.