Nexo threatened anonymous user with legal action over allegations of theft of funds

What’s new? Crypto lender Nexo has responded to allegations by an anonymous Twitter user under the pseudonym otteroooo about the appropriation of funds from the charity fund Help Karma. In a refutation, Nexo representatives called the publications defamation and warned of their intention to take legal action to protect the rights and interests if the tweets are not deleted.

Refutation on the Nexo website

How did events develop? On June 26, otteroooo published a series of tweets in which he revealed that Nexo founders Kosta Kantchev, Georgi Shulev, and Antoni Trenchev are also board members of the Bulgarian microfinance institution Credissimo. He also referred to the 2020 news about the misuse of HelpKarma’s funds. Thus, journalists from the outlet BIRD.BG indicated that the collected donations were spent on real estate and VIP travels. User otteroooo pointed out that Kanchev’s father was appointed a member of the Management Board of HelpKarma in March 2018, at which time Nexo’s initial public offering (ICO) took place. According to him, journalists from the outlet Lupa.bg later noted a connection between the increase in donations to the HelpKarma’s fund and Credissimo’s capital increase.

NEXO FOUNDER & FAMILY SIPHONED FUNDS FROM CHARITY FOR SICK KIDS, USED DONATIONS AS PERSONAL SLUSH FUND, EVEN BUILT A PALACE FOR THEMSELVESEvidences presented in full by otter belowno bueno!🦦 👇🏼 🧵 🦦— otteroooo (@otteroooo) June 26, 2022

In response, representatives of Nexo called the publication “malicious spreading of inaccurate, fake and unfounded information,” noting the reputational damage caused to the company, which entitles it to demand compensation. Nexo has indicated its readiness to take legal action immediately if the tweets are not deleted, which will expose the anonymous person’s data. It is noted that the defendant will also have to cover all legal costs.

Nexo is a blockchain-based platform that offers loans in fiat and stablecoins against cryptocurrencies such as BTC, ETH, LTC, or XRP. In April 2022, the company teamed up with Mastercard to launch the world’s first crypto-backed payment card. As of June 27,10:30 UCT, the platform’s native token NEXO is trading at $0,684, having lost 5,18% in price in 24 hours, according to Binance.

In June, Nexo offered to buy back Celsius’ assets, noting that the company had enough liquidity and capital. The offer came after Celsius froze customers’ funds “due to extreme market conditions,” but was not accepted within the stipulated timeframe of June 20.