A Twitter account blaming Nexo has caused the altcoin project to issue a cease and desist notice. Nexo is accused of stealing donations, raising money from charities. After the allegations, the NEXO price fell…
Altcoin project accused of raising money from charities
Cryptocurrency lending platform Nexo has responded to rumors that it calls “fake news” and that its founders are part of a charity embezzlement scandal. However, he said the allegations were untrue and defamatory. It has issued a public cease and desist notice to the source of the allegations.
In a blog post about the allegations, Nexo said:
Several anonymous Twitter accounts are using lies and distortions in yet another smear campaign against Nexo. It profits from short positions in a troubled market.
After the allegations, the price of Nexo (NEXO) declined to $ 0.6564. It is currently trading at $0.6915.
The allegations were viewed more than 9 million times on Twitter.
The Twitter account nicknamed “otteroooo”, which calls itself “Otters”, makes striking claims about Nexo. On June 25, he published a series of tweets alleging that Nexo’s co-founders stole funds from Bulgarian charity HelpKarma to buy real estate and finance “lavish personal travel.”
Otter shared a screenshot where he received more than 9 million views. However, he soon gathered a large audience on Twitter. He asked Nexo to respond to what they said were “ridiculous allegations” and issue a cease and desist notice.
Otter’s main allegation involves the corruption of HelpKarma founder and co-founder of Nexo “Konsta Kanchev”. The allegations are that he used the money to build a palace instead of using it for medical treatment of children.
Another key claim Otter makes is that as HelpKarma’s donations increase, payday loans company Credissimo has begun reporting significant increases in its capital, citing Fakti’s November 2020 report, implying that the donations were used to fund Credissimo. .
Otter has something to say about how this scandal is linked to Nexo. The Twitter account points out that Nexo says in its whitepaper that it’s “supported by Credissimo.” Credissimo was founded by Kantchev. Nexo’s founding partners, Georgi Shulev and Antoni Trenchev, were the companies’ heads of business development and innovation, respectively. In response to the allegations, Nexo said that he and HelpKarma “have not and never have joint operations, joint beneficial owners or joint management”:
Why should a company overseen by Fidelity, Mastercard and dozens of regulators, with hundreds of millions of revenues and billions in assets under management, resort to petty theft, let alone children with medical needs? It is a logical but neglected question.
Nexo has not yet responded to the allegations.
According to Nexo, Otter wants 50,000 USD in Coins (USDC) for his Twitter account
Nexo’s main reason for why Otter shared the allegations is that Otter was able to gain a large following. In this way, Otter increases the value of his account. Nexo shared images of a person trying to buy Otter’s account for this. He replied that Otter wanted a minimum of 50,000 USD Coins (USDC) for it.
But he did respond to Nexo’s allegations in a Twitter thread posted by Otter on June 26. The messages claim they suspect a “setup” to buy the account so Nexo can silence them. Instead, they “crafted a troll plan” to sell the Otter account and open another account to “continue exposing them” to collect Nexo’s “silent money”.
Citing the 2020 accusations from Zeus Capital, an asset management firm that shorted Chainlink (LINK), Nexo says this isn’t the first time they’ve been part of what they call a “coordinated attack.”
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