Exchange News- Vauld relied heavily on FTX to process transactions for its users.
- It said that if the transaction falls through, they would investigate alternative options.
According to recent reports, Vauld, a major crypto lender in Asia, has funds locked in the defunct FTX cryptocurrency exchange. Vauld authorities have been trapped with almost no cash as a result of the continuing FTX problem. Despite the exposure being worth an estimated $10 million.
Since it lacked its own order book, Vauld, like many other crypto exchanges, relied heavily on FTX to process transactions for its users. Most of Vauld’s one million monthly consumers reside in Asia.
India’s Enforcement Directorate (ED) froze $46 million in assets belonging to a Vauld customer in August 2022. After discovering their involvement in a high-level money laundering investigation. Last week, Vauld received another credit protection extension. Pushing the deadline for the company to fix its financial troubles until January 20. However, if necessary, the company might ask for even another extension.
Dire Need of Funding Post FTX Fall
Since July, Vauld has been discussing possible merger options with competitor Nexo. There was originally a 60-day exclusive due diligence period agreed upon between Nexo and Vauld, but it has been extended twice.
Vauld has scheduled a meeting on November 19 with Nexo, its creditor committee, and Kroll, its financial adviser. The purpose of the meeting is to give the creditor committee an update on Vauld’s restructuring efforts and to debate the Nexo conditions.
When Nexo learns about the FTX risk, it will be noteworthy to see whether they still feel confident about the purchase transaction. Vauld has said that if the transaction falls through, they would investigate alternative options, such as releasing a token and obtaining extra funds.
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Source: https://thenewscrypto.com/crypto-lender-vauld-eyeing-merger-post-10m-exposure-to-ftx/