Nexo Accuses Troubled Rival of Pursuing ‘Secret Deal’

Nexo’s bid to acquire its rival Vauld and its assets has failed for a final time, with heated words exchanged

article-image

Karnoff/Shutterstock modified by Blockworks

share

Crypto lender Nexo is seriously salty that its acquisition of troubled rival Vauld has been rejected for a final time, in a move that would have sought to make its creditors whole.

In an open letter on Thursday, Nexo blasted Vauld and its management team, including former CEO Darshan Bathija and its committee of creditors (CoC), for pushing Nexo out of the deal in favor of another party.

“The contender is an unknown fund manager with no track record, no past performance to point to but grandiose unattested promises of exorbitant annual returns,” Nexo said. 

Vauld appears to be favoring a fund management option for its restructuring efforts as opposed to making a deal with Nexo. A number of people voting for the competing bid had to be part of a “secret deal” favoring the previous management team alongside a few select whale customers, Nexo reasoned.

Vauld, which halted withdrawals in July of last year citing a tough market climate, inked a prospective term sheet with Nexo to be wholly acquired alongside its corresponding assets.

Its bid has faced multiple setbacks, including one late last month when Nexo penned its final proposal to Vauld’s creditors, outlining various gripes with its rival.

Those included “receiving slow and incomprehensive financial and legal due diligence information” and outstanding issues with the administrator of the potential deal, among other reasons. Ironically, Nexo is accused of failing to present documents proving it has the financial runway to see the deal through and assist Vauld’s creditors.

Vauld creditor questions Nexo

Vauld CoC member, Luke Thomas, tweeted his concerns over Nexo’s solvency on Dec. 28, including how it intends to treat its US and Indian creditors following a decision to exit those markets after the deal.

More than a week later, Vauld’s CoC members unanimously rejected Nexo’s deal over claims it had failed to provide adequate financial statements to prove its solvency and reassure Vauld creditors.

As a result, Nexo has shot back, angrily claiming Bathija and “his clique” did not have their creditors’ best interest in mind.

“On the contrary, they are now not even trying to hide the fact that they are doing everything they can to push aggressively for a questionable deal with an affiliated obscure fund manager that — given how they operated the company so far — will most certainly result in the total loss of whatever little assets are still left on Vauld’s balance sheet through speculation and hefty management fees,” Nexo said in its letter.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

👨‍⚖️ SBF’s courtroom sequel: Plus, Coinbase’s legal loss was DeFi’s gain

article-image

Public mining companies have been acquiring sites, refreshing machine fleets and diversifying business models in preparation for the event

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago