Crypto lender Nexo is announcing intentions to buy another lending platform in the industry as markets continue to struggle.
According to a Reuters report, a new statement from the London-based Nexo says it will buy all of Vauld, though it did not disclose a price or date.
Nexo also plans to “reorganize its future operations with the aim to accelerate its deeper presence in Asia,” as per the report.
On Monday, the Singapore-based Vauld announced the halting of withdrawals, citing recent market events that have had a negative impact on the company.
“This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate which has led to a significant amount of customer withdrawals in excess of a $197.7 million since 12 June 2022 when the decline of the cryptocurrency market was triggered by the collapse of Terraform Lab’s UST stablecoin, Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.
As such, we have considered that it would be in the best interests of stakeholders to take immediate action in the circumstances…
In the meantime, we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect…
Specific arrangements will be made for customer deposits as may be necessary for certain customers to meet margin calls in connection with collateralized loans.”
Though Nexo says it aims to provide immediate assistance to the faltering lender, the statement is unclear on the specifics.
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