The tension between crypto lending rivals Nexo and Vauld Group has escalated further with the former claiming that Darshan Bathija, the Chief Executive Officer (CEO) of Vauld does not have the best interest of its creditors in mind. This accusation comes after Vauld and its committee of creditors (COC) turned down the revised takeover bid made by Nexo.
“Darshan Bathija and his clique do 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 Vault’s balance sheet through speculation and hefty management fees,” Nexo said in a statement.
Nexo Pushed to Relieve Vauld Group
In 2022, Nexo signified interest in acquiring the embattled Singapore-based crypto lending platform which suspended withdrawal in the heat of the crypto winter. Consequently, an indicative term sheet was signed by both parties with plans to conduct corporate due diligence within sixty days. At the time, the acquisition seemed to be in the interest of Nexo and Vauld.
“We have to see what exactly is on their books and it’s going to take a little while,” Nexo co-founder Antoni Trenchev said in an interview at the time. “But since we have the exclusive exploratory period, we are the only ones looking at them right now.”
However, after several considerations, Vauld decided that the acquisition was not in favor of its creditors.
Therefore, it revealed it has “sought a mutual agreement with Nexo to terminate the existing exclusivity arrangements, and we are continuing our active engagement with the shortlisted fund managers in developing a viable strategy that would best serve the creditors’ interests.”
Vauld expressed its concerns about Nexo’s financial health amongst other issues. Markedly, Nexo executives already denied rumors about a purported insolvency that was making rounds last year. From Nexo’s response, the Singapore-based troubled crypto lender is considering a fund management option for its restructuring and has identified six candidates who may be interested in the deal.