Nexo to acquire Vauld and reorganize its future operations to accelerate its more profound presence in Asia
• Vauld said it was facing financial challenges due to volatile market conditions following the collapse of TerraUSD
• Nexo to acquire Vauld and reorganize its future operations to accelerate its more profound presence in Asia
Crypto lender Nexo on Tuesday said it plans to buy rival Vauld, the latest news of consolidation in the digital currency industry as prices tumble.
Nexo neither said how much it plans to pay for Vauld nor when the deal would close.
Vauld, which is based in Singapore, on Monday, said that it had suspended withdrawals for its more than 800,000 customers.
Nexo aims to “provide immediate assistance and alleviate withdrawal limitations put in place on Vauld’s platform,” the company said in a press release.
In a blog post on Monday, Vauld said it was facing “financial challenges” due to volatile market conditions, “the financial difficulties of our key business partners inevitably affecting us”, and customers having withdrawn more than $197.7 million since June 12.
Crypto lending, which acts as unregulated banks for the crypto world by offering high returns, and lending digital tokens to borrowers, has boomed over the last two years.
Another lender, Voyager Capital, suspended withdrawals last week and issued a default notice to hedge fund Three Arrows Capital (3AC) for failing to pay its 15,250 bitcoin and 350 million USD Coin (USDC) loan.
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