Two Crypto Lending Rivals Dispute Rises Amid Market Downturn

January 06, 2022 Story: Divya Sinha

Tensions have escalated in a dispute between two crypto-lending rivals facing a sharp decline in the digital asset market.

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As per the reports, Nexo Capital in a letter has accused troubled Vauld of not acting in the best interests of its creditors.

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Nexo, which is looking to acquire Vauld said the company is against it and pushing for a “questionable” deal with an affiliated fund manager.

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Nexo's letter states that this separate arrangement will most likely result in the complete loss of the small amount of assets remaining on Vauld's balance sheet.

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To ensure the fairness of the voting process and results, Nexo has also requested creditors to seek an independent third-party administrator.

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The Nexo-Vault dispute looms large over the latest setback in the cryptocurrency lending space which has recently seen Celsius Network bankruptcy, massive layoffs at Genesis Global Trading, and massive losses at Silvergate Capital.

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Vauld's parent company, Defi Payments Ltd., has time till January 20th to submit its restructuring plan to its creditors.

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