Vauld stated in a private message on Twitter that Coindesk (1) released on Monday that the company had previously investigated the possibility of being acquired by Nexo as part of the suggested strategy for restructuring (Dec. 26).
"To provide a very brief summary of the situation, the fruit of our discussions with Nexo has unfortunately not been realized,"
Nevertheless, according to the news site, a source who was aware of the transaction stated that discussions were still taking place and that Nexo continued to exhibit interest in the acquisition.
Co-Founder & Managing Partner Kalin Metodiev told Coinbase that Nexo hasn't relinquished on its effort to save Vauld & help its debtors recoup the greatest potential platform funds.
"Nexo has not given up on its attempt to save Vauld," he said.
The possibility that the agreement would fall through comes just under a month before the deadline that Vauld had set for submitting a restructuring report to its creditors.
Vauld Filed for Bankruptcy in July 2022
Following the suspension of withdrawals in July, the company based in Singapore filed for bankruptcy protection, becoming one of several crypto currency companies to do so. This was part of a string of crypto companies that ceased operation to enable the user to access an unstable market for digital assets.
Since June, customers have withdrawn almost $200 million worth of crypto currency from the platform. In addition, Vauld reduced executive remuneration by 50 percent, slowed its hiring process, and let go of approximately thirty percent of its personnel.
In July, Nexo made public its intent to acquire Vauld and stated that the move was part of an effort to "reorganize its future activities to expedite its deeper presence in Asia."
Reasons For Vauld's Backtrack
According to reports, however, the months of negotiations to make that deal a reality have not produced fruitful results. During the months of negotiations, Nexo said it had encountered "challenges," including "defamation" and "the spread of misinformation on social media," according to an email sent to creditors and obtained by Bloomberg News (2). Nexo also cited "the spread of misinformation on social media."
Another problem is the decision that Nexo made earlier this month to stop doing business in the United States, citing that it had hit a "dead end" in its negotiations with state and federal officials.
In a blog post, Nexo stated, "It is now unfortunately clear to us that despite rhetoric to the contrary, the United States refuses to provide a path forward for enabling blockchain businesses, and we cannot give our customers confidence that regulators are focused on their best interests."
This was about the fact that the United States has refused to provide a path forward for enabling blockchain businesses.
According to a report by Bloomberg, this is troubling information for Vauld because forty percent of its clients in the United States will receive no benefit from the Nexo acquisition.
In the meantime, the order handed down by the court gives Vauld until Jan. 20 to present a proposal for the company's reorganization.