• Moratorium protects Vauld from creditors
• Vauld owes a total of $400 million, primarily to retail investors
• Consideration of a takeover by Nexo is ongoing
Singapore-based crypto lender Vauld now has three months to review all options for the company, The Block reports, citing insiders.
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Vauld isn’t the only Asian crypto company trying to buy time with a court moratorium in Singapore. Troubled crypto exchange Zipmex, which has struggled with its million-dollar investments in Babel Finance and Celsius, has also requested a moratorium in Singapore to raise fresh capital. According to media reports, a takeover by Coinbase recently failed.
Massive liquidity problems at Vauld
The crypto lender, which has prominent investors in PayPal co-founder Peter Thiel and the crypto exchange Coinbase, was initially optimistic about the crypto winter.
After the prices for Bitcoin, Ethereum and Co. fell so massively and investors had withdrawn around 198 million US dollars since June 12, as Vauld boss Darshan Bathija wrote in a blog post, Vauld had to do all business on his platform at the beginning of July expose. According to the announcement, one wants to examine restructuring options. Vauld previously announced that it would lay off almost a third of its employees.
Overall, Vauld’s obligations to creditors are said to total more than $400 million, and around 90 percent relate to small investors.
takeover preparations
After the crypto lender Nexo had already tried in vain to take over struggling competitors in the past, the company is currently examining the takeover of Vauld. It is still too early for a concrete offer, but one is optimistic, Nexo boss Antoni Trenchev told CNBC.
The period for the examination of the books is set at 60 days. A complete restructuring as well as an expansion to Southeast Asia and India are in the pipeline.
In a press release on the signing of a preliminary agreement with Vauld, Vauld CEO and co-founder Darshan Bathija expressed optimism: “Under the Nexo umbrella, we are immediately in a strong position to continue our fiduciary commitments to our customers while supporting the ambitious plans of both companies implement, regardless of market conditions”.
Opportunity for consolidation of the crypto industry
CNBC sees Nexo’s moves to acquire struggling competitors as a hint of crypto market consolidation. Nexo co-founder Antoni Trenchev also sees the current crypto winter as an opportunity for restructuring and reorientation of the market: “I think we will experience a period of consolidation, mergers and acquisitions. In the end there will be fewer companies, but there will be stronger ones better business practices”.
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