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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

Ethena Labs is leaping from its flagship synthetic dollar, USDe, to a full product suite—USDtb, iUSDe, and the Arbitrum-based Converge Chain—designed to marry crypto-native yields with TradFi-grade compliance. Our analysis shows how expanding into CME, ETF options, and tokenized Treasuries could lift protocol revenue from sub-$500 million in a bear case to several billion dollars if favorable regulation and institutional adoption align.

article-image

CEO Mike Silagadze tells Blockworks that the US is “open for business” and why its DeFi bank offering is the first of many

article-image

Doing one thing well and leaving everything else out is often what disruptive technologies do best

article-image

Why an analyst is kicking off COIN coverage with “buy” rating

article-image

“Bitcoin does not require a strong equity rally to move higher,” YouHodler markets chief Ruslan Lienkha said

article-image

President Trump’s comments that he will not look to fire Fed Chair Jerome Powell sent stocks higher in after-hours trading Tuesday