Crypto Lender Nexo Denies Fraud, Issues Cease And Desist Notice

Nexo on Sunday dismissed latest allegations of fraud towards the crypto lender, calling them “fake news.” The agency additionally issued a “Cease and Desist” discover on its web site.

Nexo’s response was directed at Twitter person @otteroooo, who over the weekend made allegations of fraud towards Nexo and its founders. Otteroooo alleged that Nexo’s founders had funneled illicit funds into the agency from a Bulgarian charity.

In a blog post, the agency referred to as the accusations an apparent “smear campaign,” and famous a number of inconsistencies in Otteroooo’s accusations.

But Nexo was criticized on social media over publicly posting the cease and desist notice. The crypto lender’s native token, NEXO, fell about 5% to $0.6782 prior to now 24 hours.

Nexo denies fraud, reiterates monetary stability

The crypto lender denied any hyperlinks to the alleged Bulgarian charity, and mentioned Otteroooo’s allegations had been seemingly motivated by monetary achieve. It acknowledged that its funds had been so as, and that it was at no danger of

Nexo mentioned that the allegations supposed to capitalize on a severely weakened market, and had been seemingly motivated by merchants with quick positions.

Otteroooo’s allegations come amid troubled instances for crypto lenders, after a liquidity crunch dented the operations of a number of gamers.

Celsius and Babel Finance not too long ago suspended withdrawals, with the previous likely to file for bankruptcy. Peer BlockFi received a $250 million bailout from FTX, as did Voyager Digital. Both lenders had been uncovered to the latest Three Arrows Capital meltdown.

Nexo had not too long ago offered to buy Celsius’ remaining assets. Reports mentioned the agency plans to additional consolidate the crypto market with extra acquisitions.

Twitter questions stop and desist weblog publish

While a number of Twitter customers famous that inconsistencies in Otteroooo’s allegations meant the thread was seemingly false, others speculated over Nexo’s approach to the allegations.

Users specifically questioned the necessity to post such a notice publicly, and whether or not the agency is trying to cover up a greater issue.

With greater than 5 years of expertise masking world monetary markets, Ambar intends to leverage this data in direction of the quickly increasing world of crypto and DeFi. His curiosity lies mainly find how geopolitical developments can impression crypto markets, and what that would imply in your bitcoin holdings. When he is not trawling by the online for the most recent breaking information, you will discover him taking part in videogames or watching Seinfeld reruns.
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