Nexo says it has “not given up” about bailing out rival cryptocurrency lender Fuld

Nexo has denied reports that talks about a potential acquisition of troubled rival cryptocurrency lender Fuld are over, asserting that the decision on the competing lender’s future lies in the hands of the company’s creditors’ committee, not its former CEO.

Rumors of a breakdown in negotiations were sparked by an email that Fold founder and CEO Darshan Batiga sent to the company’s creditors, who said that discussions with Nexo “unfortunately did not materialize.”

After halting withdrawals from its platform in early June, Fuld has filed for creditor and lawsuit protection in a Singapore court, with the move much like Chapter 11 bankruptcy under the US Bankruptcy Code. Fuld allegedly owes a total of $402 million to his creditors, including the now-bankrupt cryptocurrency exchange FTX.

Nexo announced plans to acquire Fuld immediately after Fuld’s problems arose, with the two parties signing an exclusivity period, which Nexo says has not yet expired.

In order to cancel the deal, Nexo added, the terms of the exclusive talks require mutual agreement — which is also not the case.

said Kalin Mitodev, Managing Partner of Nexo Decode.

Fuld’s creditors’ concerns

Nexo also today sent Fuld’s creditors an open letter and final amended proposal for the acquisition (copy of Decode cf), and says that despite Nexo’s “genuine intent to help as quickly as possible,” the “company’s transaction team” faced daily challenges, such as receiving slow and incomplete financial and legal due diligence information and facing bias from the process officer, Kroll (Singapore). “

Describing the administrator’s actions, Nixo said Kroll “seemed to aim the solution toward an active administrative arrangement rather than a loan arrangement, which would put former creditors at risk and require them to rely on strong return expectations to offset their losses.”

Metodiev said, “As industry leaders, we are disappointed to see a handful of people with self-serving agendas trying to take over the narrative and prevent creditors from making their best decisions.” Decode. “We had hoped that the bad actors would have mostly left the blockchain space, but it is clear that we as a society still have work to do.”

Fuld’s concerns reportedly include plans for Nexo to phase out the US market, where the Singapore-based company has many customers. But in today’s proposal, Nexo said it intends to acquire Fuld’s customer base, all cryptocurrencies owned by Fuld and all cryptocurrencies attributed to Fold’s customers — as well as all liabilities arising from ownership of the acquired assets.

Nexo added that all customers – unless they are subject to restrictions in their jurisdiction’s regulations – will be able to borrow, earn and exchange digital assets allocated to their new accounts, effectively instantly.

Additional measures include an injection of capital from Nexo’s balance sheet, effectively reducing the asset shortfall by 10% for all new Nexo customers, and no lock-up period for withdrawing assets.

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