Crypto lender Nexo wants to take on troubled rival Vauld; Voyager files for bankruptcy - Stockhead

News of crypto contagion keeps coming, and dominoes keep falling. Big crypto lending company Nexo is eyeing rival Vauld, while big crypto broker Voyager recently filed for bankruptcy.

London-based leading cryptocurrency lender Nexo has offered to buy Singapore competitor Vauld, which suspended operations earlier this week due to financial problems.

Vauld has stated it is exploring restructuring options, so this could be a sought-after savior. In fact, Vauld CEO Darshan Bathija tweeted about the company’s potential deal with Nexo yesterday…

The completion of this transaction is pending due diligence – which both teams are working on as we speak.

Vault has gone to great lengths to provide long-term value to all its customers, and we believe in being under @Nexo umbrellas will significantly help achieve this.

— Darshan Bathija (@darshanbathija) July 5, 2022

Nexo is reportedly currently conducting a 60-day due diligence process on the Singapore-based company. The co-founder of the larger company Antoni Trenchev indicated to CNBC that it was too early to talk about an assessment at this stage, but he was optimistic about getting a deal.

“We are starting due diligence,” said Managing Partner of Nexo. “We have a 60-day exclusivity window where they will open the book. You will see everything. Is there a hole? How big is the hole? Where are the assets? Who are the partners?”

In a further statement regarding potential deals and current market conditions, Nexo noted that it is now up to “capable and well-capitalized entities to come up with systemic solutions to help the sector”.

If successful, Nexo said it plans to restructure Vauld and pursue expansion in Southeast Asia and India.

In June, Nexo also offered to buy the assets of one of its biggest rivals – Celsius Network, shortly after Celsius announced a withdrawal freeze. Celsius did not come to the party, and has since been trying to restructure his debt.

In fact, in a relatively recent plot twist, since July 1 Celsius is reported to have quickly paid off most of its loans…

https://t.co/ZkogfXOqJ0

— Watcher.Guru (@WatcherGuru) July 5, 2022

Voyager joins 3AC in fun of filing for bankruptcy

New York crypto lender/broker Voyager Digital has become the second major company in the space to file for bankruptcy recently, joining Singapore-based Three Arrows Capital (3AC) in the barrel of laughter.

In a statement, the company confirmed reports that it filed for “Chapter 11” bankruptcy protection, being the main victim of crypto contagion. The filing lists assets between US$1 billion and US$10 billion, and liabilities in the same range.

The company said it has about $1.3 billion in crypto on its platform and holds more than $350 million in cash on behalf of customers at New York’s Metropolitan Commercial Bank.

Voyager and crypto hedge fund 3AC are tied together in a financial death spiral for centuries. The latter also filed for bankruptcy earlier this week after its failure to meet margin calls from several lenders.

In June, Voyager revealed 3AC had defaulted on a $670 million loan from the New York firm.

Voyager filed for Chapter 11 tonight.

Celsius will be next.

All dominoes that need to be taken down will fall.

And then we’ll just carry on with nothing but lessons and memories.

— Mike Alfred (@mikealfred) 6 July 2022

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