London-based crypto lending firm, Nexo, is set to acquire fellow lender and crypto exchange Wold. Wald had yesterday halted deposits, withdrawals and trading on its platform, citing financial challenges. In a statement at the time, the company said it was exploring all options “including possible restructuring options” to protect the interests of investors.
“I understand that many of our customers are nervous about your funds. We are working tirelessly to ensure your financial security. To this end, we signed an agreement with @Nexo to acquire Wold for up to 100% The term sheet is signed.” Founder and Managing Partner of Nexo.
Details of the deal have not been released, Tranchev told crypto publication The Block, adding that the term sheet gives the London-based firm a 60-day special search period to do due diligence. He also added that the company may refinance or refinance the platform based on the result of its due diligence.
Wold became the latest decentralized finance (DFI) firm to be hit by the recent downturn of the crypto market. In its statement on July 4, the company said that its financial challenges were “due to a combination of circumstances”, including volatile market conditions, financial difficulties of major trading partners, and withdrawals of more than 197.7 million% since June 12, 2022. Was. , triggered by the collapse of Terraform Labs’ UST stablecoin, a halt on withdrawals by Celsius Network and a default by Three Arrows Capital on its loans.
The company’s decision to stop all activity on its platform prompted many people to take to social media and call out influencers who had initially promoted the firm. Wold began in 2018 as Bank of Hodlers (BoH) and was rebranded in the second quarter of 2020. According to a roadmap presented on the company’s website, it was planning to issue cards, bank accounts and cross-border payments using its platform in the future. , The company was founded by Bathija and Sanju Soni Kurien, based in Singapore.
This is not the first time that Nexo has sought to bail out the troubled crypto firm. Last month, the company offered to buy assets owned by ailing crypto lending firm Celsius Network. In a tweet on June 13, the company claimed that all of its products were “working normally”.
“As always – deposits and withdrawals are processed promptly so that you can make necessary arrangements in this latest downturn across all markets,” the tweet read.