Consolidation in the crypto industry continues with Zug-based Nexo eyeing a troubled Singapore-based firm.
Nexo has kicked off a 60-day due diligence process for Singapore-based crypto lender Vauld, according to a statement released Tuesday by the company. It plans to fully acquire the lender and reorganize its operations in order to deepen the Swiss company's presence in Asia.
Vauld suspended withdrawal, trading, and deposit-taking activities on its platform on Monday, saying it was in talks with potential investors given the «financial challenges» it faced. The firm also said it had hired financial and legal advisers to explore restructuring options and also planned to apply for a moratorium with the Singapore courts.
«Bad Investment Decisions»
According to Vauld, the combination of volatile markets, financial troubles among key partners, and a spike in withdrawals led it to its current predicament. However, Nexo co-founder Antoni Trenchev said that Vauld’s difficulties may be attributable to the firm’s own actions.
«It was built out correctly, unfortunately, turns out they made some bad investment decisions, but the company as such is interesting as it has a lot of traction in India and Southeast Asia,» Trenchev said in an interview with «Bloomberg» without elaborating further.
Acquisition Mode
In a similar fashion to Sam Bankman-Fried's FTX, healthy crypto firms such as Nexo are taking advantage of the current downswing to buy assets at attractive price levels.
In March, Nexo announced the establishment of a fund – Nexo Ventures — with $150 million planned for investments in «a wide range of early-stage retail and institutional projects». In June, it followed that up with a potential offer for crypto lender Celsius Network that was subsequently called off.
«Any investment we make needs to make financial sense. We are not the Federal Reserve where we can print money at will and spend as we see fit,» Trenchev said.
