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 known 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 up 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 have been possible motivated by monetary acquire. It acknowledged that its funds have been so as, and that it was at no danger of
Nexo mentioned that the allegations meant to capitalize on a severely weakened market, and have been possible 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 lately 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 have been uncovered to the latest Three Arrows Capital meltdown.
Nexo had lately 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 put up
While a number of Twitter customers famous that inconsistencies in Otteroooo’s allegations meant the thread was possible 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.
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