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Crypto lender Nexo in talks to acquire Vauld

Ryan Lawler
Jul 5, 2022
Illustration of a pattern of hands trading tokens.
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  • In its statement, the company said customers had withdrawn nearly $200 million since June 12, when the TerraUSD stablecoin collapsed.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.

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.

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