Nexo on Sunday dismissed latest allegations of fraud in opposition to the crypto lender, calling them “faux information.” The agency additionally issued a “Stop 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 known as the accusations an apparent “smear marketing campaign,” and famous a number of inconsistencies in Otteroooo’s accusations.
However 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 have been seemingly motivated by monetary acquire. It acknowledged that its funds have been so as, and that it was at no threat of
Nexo mentioned that the allegations supposed to capitalize on a severely weakened market, and have been seemingly 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 not too long ago suspended withdrawals, with the previous likely to file for bankruptcy. Peer BlockFi received a $250 million bailout from FTX, as did Voyager Digital. Each lenders have been uncovered to the latest Three Arrows Capital meltdown.
Nexo had not too long ago offered to buy Celsius’ remaining assets. Experiences mentioned the agency plans to additional consolidate the crypto market with extra acquisitions.
Twitter questions stop and desist weblog put up
Whereas a number of Twitter customers famous that inconsistencies in Otteroooo’s allegations meant the thread was seemingly false, others speculated over Nexo’s approach to the allegations.
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