Nexo breaks silence on stolen funds allegations

Sahana Kiran
Source – Unsplash

Anxiety and fear have undoubtedly taken over the crypto market. The increased interest in the bears and the constant failure of several projects due to the delinquency of their creators have been taking the front stage. During a time like this, rumors pertaining to another project, Nexo emerged.

Crypto lending platforms have been feeling the heat, thanks to their failing counterparts. During the weekend, Nexo was widely being discussed all over Twitter. This, however, wasn’t for all the right reasons. A Twitter user who goes by the name, @otteroooo alleged that Nexo’s founders as well as their family members siphoned funds from charities.

In the Twitter thread otteroooo alleged that Kosta Kanchev, a co-founder of Nexo stole funds from HelpKarma, a charity crowdfunding portal as an executive of the same platform. All of this was done to build “a palace the size of a high school.”

Nexo, however, did not sit still. Following the increased engagement on the afore-seen Twitter thread, the platform shared a blog post. In the blog post, the crypto lending firm said,

Several anonymous Twitter accounts are using lies and distortion in yet another smear campaign against Nexo and profiting from short positions in a distressed market.

Furthermore, Nexo went on to list an array of things fake news entails. Circling back to the first tweet, the Twitter user reportedly decided to go the clickbaity and emotional way to reach the audience. Following this, the firm shared a screenshot alleging otteroooo was ready to sell his Twitter profile for the right price.

Nexo [NEXO] dips down by 6 percent

While these allegations poured in, Nexo dropped to a low of $0.65, earlier today. However, at press time, the asset was trading for $0.6813 with a 5.49 percent daily drop. After a long run of volatility, the crypto market seemed to be stabilizing. NEXO, however, was sinking and it was speculated to be because of the above-seen drama.

While the crypto lending platform has been standing its ground, otteroooo remained unfazed and stuck to his allegations. But the real victims are the audience and investors.

There have been so many failing projects over the last couple of months. Retail investors have lost significant amounts of their hard earnings. Rumors like these quite often scare investors away from the market itself further deterring the growth of the crypto-verse.

Acknowledging the same, Nexo affirmed the reason behind its rebuttal and said,

“While Nexo generally does not engage in refuting obvious lies and smear campaigns, in the current environment of volatility and extreme conditions, we have listened to the blockchain community and their desire for us to briefly address a slate of ludicrous allegations for the sake of transparency and clarity.”

Terra’s whistleblower, FatMan also came in support of Nexo and pointed out that otteroooo’s tweets were false.

Additionally, FatMan asserted that he wasn’t endorsing Nexo. The Twitter personality even asked investors to wary of depositing funds into CeFi services. All he intended to do was put both sides out there.