FCA-Regulated Crypto Custodian Digivault Is Up for Sale Following Eqonex Liquidation: Source

Digivault, the cryptocurrency custodian that was one of the first to secure a license from the U.K. Financial Conduct Authority (FCA), has put itself up for sale after parent company Eqonex was put under judicial management in Singapore last week, according to a person familiar with the matter.

Nasdaq-listed holding company Eqonex (EQOS) entered into voluntary liquidation after a takeover deal by Bitfinity, a payments firm owned by crypto exchange Binance, fell at the final hurdle.

Digivault, which is not involved in the liquidation process, is currently winding down operations, according to the person familiar with the matter. Any buyer would get staff, technology and, for a time, an anti-money laundering registration that comes with the business, the person said.

The cryptocurrency industry is still reeling from a year-long bear market that worsened this month amid the multi-billion-dollar collapse of FTX, one of the world’s largest exchanges. Several firms have taken precautionary measures to mitigate a shortfall in liquidity, with the likes of Genesis Global Trading and BlockFi halting withdrawals over the past few weeks.

There are currently several parties that have already expressed interest in acquiring Digivault and there have been no layoffs, the person familiar with the situation said.

Neither Digivault or Eqonex responded to CoinDesk’s request for comment.

Read more: Crypto Financial Services Firm Eqonex Files for Voluntary Debt Restructuring in Singapore

Source