The crypto contagion news keep on coming, and the dominoes keep falling. Major crypto-lending firm Nexo has its eyes on rival Vauld, while big crypto brokerage Voyager has just filed for bankruptcy.

The London-based leading cryptocurrency lender Nexo has offered to buy embattled Singaporean competitor Vauld, which halted operations earlier this week in the face of financial problems.

Vauld had stated it was exploring restructuring options, so this could well be the lifeline it’s been looking for. In fact, Vauld CEO Darshan Bathija tweeted about the company’s potential deal with Nexo yesterday…

Nexo is reportedly conducting a 60-day due diligence process on the Singaporean company. The larger firm’s co-founder Antoni Trenchev indicated to CNBC that it was “premature” to speak about a valuation at this stage, but that he is optimistic about securing a deal.

“We are starting the due diligence,” Nexo’s managing partner said. “We have a 60-day window of exclusivity where they will open up the books. You will see everything. Is there a hole? How big is the hole? Where are the assets? Who are the counterparties?”

In a further statement regarding the potential deal and the current market conditions, Nexo noted that it’s now up to “capable and well-capitalised entities to come up with systemic solutions to aid the sector”.

If successful, Nexo said it plans to restructure Vauld and pursue expansion in Southeast Asia and India.

In June, Nexo also offered to purchase assets of one of its biggest rivals – Celsius Network, shortly after Celsius announced a freeze on withdrawals. Celsius didn’t come to that party, however, and has since been looking to restructure its debt.

In fact, in a relatively new plot twist, since July 1 Celsius has reportedly been rapidly repaying off sizeable chunks of its loans…

 

Voyager joins 3AC in the bankruptcy-filing fun

New York crypto lender/brokerage Voyager Digital has become the second major firm in the space to file for bankruptcy recently, joining Singapore-based Three Arrows Capital (3AC) in that barrel of laughs.

In a statement, the company confirmed reports that it’s filed for a “Chapter 11” bankruptcy protection, becoming the a major crypto-contagion casualty. The filing lists assets of between US$1 billion and US$10 billion, and liabilities in the same range.

The company said it has roughly US$1.3 billion of crypto on its platform and holds more than US$350 million in cash on behalf of customers at New York’s Metropolitan Commercial Bank.

Voyager and crypto hedge fund 3AC are inexorably tied together in a financial death spiral for the ages. The latter also submitted a bankruptcy filing earlier this week after its failure to meet margin calls from several lenders.

In June, Voyager revealed 3AC had defaulted on a humungous US$670 million loan from the New York company.

 

Read MoreBitcoinCryptocurrency

You might be interested in