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Nexo on Sunday dismissed current allegations of fraud in opposition to 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 consumer @otteroooo, who over the weekend made allegations of fraud in opposition to 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 previously 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 doubtless motivated by monetary acquire. It said that its funds had 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 had been doubtless motivated by merchants with brief positions.

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

Celsius and Babel Finance just 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 had been uncovered to the current Three Arrows Capital meltdown.

Nexo had just 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 doubtless 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 protecting international monetary markets, Ambar intends to leverage this information in direction of the quickly increasing world of crypto and DeFi. His curiosity lies mainly find how geopolitical developments can influence crypto markets, and what that would imply on your bitcoin holdings. When he is not trawling by way of the online for the newest breaking information, you will discover him taking part in videogames or watching Seinfeld reruns.
You can attain him at [email protected]

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