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Acquisition talks between Vauld and its potential buyer, Nexo, have broken down, according to a report published by Bloomberg on Dec. 26.

Vauld was one of several cryptocurrency lending and borrowing companies that suspended withdrawals this summer due to a widespread liquidity crisis. The firm halted services on July 4 and filed for creditor protection on July 8.

During that time, Vauld’s competitor, Nexo, took steps to acquire and rescue the failing company. Updates from Vauld suggest that Nexo was still engaging in acquisition talks as recently as Sept. 6, as the two firms extended the due diligence process at that time.

However, in an email obtained by Bloomberg today, Vauld seemed to suggest that acquisition talks have come to an end. In that email, Vauld said that it was “previously exploring a potential acquisition” with Nexo. The firm summarized recent events by stating that past discussions have “unfortunately not come to fruition.”

Nexo, however, suggested in its own statement that it is still cooperating with Vauld. Nexo said that it submitted a revised acquisition proposal on Dec. 2.

In a statement quoted by Bloomberg, Nexo wrote that it is dedicated to “offering creditors the most favorable path forward” and said that it will work to help those creditors.

Nexo noted it has faced other challenges in recent months, seemingly alluding to a smear campaign in which its founders were accused of embezzling charity funds. The company is also discontinuing its services in the U.S. due to regulatory challenges ⁠— a change that has likely consumed its attention in recent months.

Vauld must present a restructuring plan by Jan. 20. As such, there is little time for the two firms to reach an agreement, despite Nexo’s insistence that talks are still open.

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