📅 A Vauld Move

In the frothy waters of the bear-market cryptosphere, big and small players alike struggle to stay afloat, thrashing their arms around in the foam. Two companies still in the game are Vauld and Nexo; but what fate awaits them?

• Vauld is a crypto lender formerly known as the Bank of Hodlers. Their unique selling point was being both cross-chain and partially decentralised, unlike many other lenders who chose one or the other.
• However, after the Terra-Celsius-3AC meltdown last summer, Vauld were an early mover in pausing withdrawals (a key disadvantage to only being partially decentralised!).
• This came a month after CEO Dharshan Bathija sacked 30% of the workforce and halved the pay of the top executives.
• It was subsequently revealed by The Block that their debts were ~$400 million, of which 90% was to retail investors.
• Rival lending platform Nexo was quick to sign a term sheet with Vauld with a view to acquisition.
• But talks were ultimately not fruitful, and by the end of the year reports were out that the deal was off.
• Last week Nexo had its office in Sofia raided by Bulgarian police and “foreign agents” after allegations of criminality, including evasion of Russian sanctions.
• Nexo responded quickly on Twitter that is had “very stringent anti-money laundering and know-your-customer policies“.
• For Vauld, a court has given them an extension until February 28th before its creditor protection expires.