Nexo is accused of “stealing charity money” – How accurate is that?

The Nexo loan task was accused by an anonymous Twitter account of “stealing charity money”. This story is having a whole lot of focus in the cryptocurrency neighborhood. So what is the reality?

On June 26, an anonymous Twitter account known as “Otter” was launched. a bunch of tweets claimed that the Nexo group stole income from a children’s charity and made use of it for private attain.

Nexo stealing charity income?

Otter claims that Nexo’s founders and his loved ones extracted income from a charity for sick little ones, then made use of this income to serve private interests, although also developing a “magnificent palace” for himself.

Nexo was co-founded by 3 Bulgarian boys, Kosta Kantchev, Antoni Trenchev and Georgi Shulev. Let’s see how trustworthy they are.

one / Kosta Kantchev was the co-founder of Credissimo just before founding Nexo. Pay focus to the title “Credissimo”, as it is the crux of the excavation (BG Boy one).

two / Antoni Trenchev is a former member of the Bulgarian parliament.

three / Georgi Shulev is the son of former Deputy Prime Minister of Bulgaria Lydia Shuleva.

What’s exclusive is that all 3 of this tycoon’s sons have a place of Director in “Credissimo”, the organization stated 32 instances in Nexo’s whitepaper.

The following are Otter’s allegations:

Let’s go back in background in 2020, Bulgaria uncovered a big scandal linked to HelpKarma, a charity targeted on children’s wellbeing. Bureau of Investigative Reporting & Data BIRD.BG identified that donations to HelpKarma had been embezzled to order true estate or pay out for lavish private travel …

In March 2018, Kalin Kanchev, the father of Kosta Kanchev (BG Boy one), was “banned” on HelpKarma’s board of directors. Coincidentally, this was also the time for Nexo’s initial ICO.

Investigations exposed that HelpKarma had raised hundreds of thousands of bucks and awarded big commissions to: Board of Directors (father of BG Boy one) Founder (cousin one of BG Boy) and a wonderful $ 50,000 salary for other associated persons.

This was deemed this kind of a huge scandal that the Bulgarian Deputy Finance Minister had to communicate out, estimated that twelve.two% of the donations had been paid in the kind of “salaries” and only 17 persons in the group.

Konsta Kanchev stole income donated by 130,000 persons and went on to create a substantial college-sized developing. It also turned out that the big sum was disguised in the kind of big expenses and numerous other blatant accounting tricks.

Additionally, Nexo raised capital from Arrington XRP Capital. The website link amongst Arrington XRP Capital and Nexo is linked by Natalia Karayaneva, the daughter of Vetko and Marinela Arabadjievi, all arrested for income laundering and tax fraud. It was this organization that invested in Luna Terra – Chai – Anchor. Three tasks have brought on problems for the marketplace in current instances.

How does Nexo “counter-checkers”?

In response to the over allegations, Nexo posted two texts on its web-site in the initial area it is a letter asking for the prosecution to be terminated and rejected Twitter account Otter e a blog post expose Otter’s false claims.

In its termination observe, Nexo asks the anonymous account to quickly clear away all remarks, statements, critiques or something that is disparaging, defamatory, discrediting, goodwill or otherwise disparaging and Nexo’s small business interests. The platform factors out that 1 of the causes Nexo Group and all its affiliated entities have regularly maintained a fantastic status due to the fact 2017 is simply because they have often followed the law and place their clients’ interests initial. And they declare they are prepared to go all the way to look for total compensation if their status is broken.

In the web site submit, Nexo confirmed that there are a quantity of anonymous Twitter accounts that present false details and distort Nexo’s status for private attain. These are totally ridiculous, downright superficial and unsubstantiated allegations from 2020.

Nexo replied:

“Why would a company with hundreds of millions of revenues and management of billions of assets, controlled by Fidelity, Mastercard and dozens of regulatory agencies, resort to petty theft, not to mention wiretapping? From children in need?”

Nexo also exposed two normal “formulas” that criminals generally use to “seal” renowned organizations in buy to draw focus to themselves.

one / Take benefit of Nexo’s status to “polish the name” and entice a big quantity of followers.

two / Earn income with this quantity of followers. Otter provides his Twitter account for sale.

The cryptocurrency lending platform claims that “the truth is often simple”. The task has absolutely nothing to do with the other charity, there has by no means been any joint action or joint management amongst them. Nexo also does not neglect to warn end users to pay out focus to blatant manipulations and allegations of distortion of the reality.

With the legal suggests offered, Nexo is operating with legal counsel in the US and United kingdom to put together to sue and look for proper compensation. The defendant will be necessary to cover all prices and costs (like legal costs) in favor of Nexo in the legal proceedings till the request is thoroughly pleased.

The over incident occurreda at a time of wonderful worry for most lending platforms. With the marketplace “sick” in mid-June, liquidity issues are throwing a dark cloud above numerous big institutions. Celsius, Babel Finance blocked deposits, withdrawals and transactions on the platform, employed attorneys to put together for bankruptcy. Veteran investment fund Three capital arrows (3AC) it is also dealing with numerous ups and downs, getting been massively liquidated, claiming to be prepared to promote assets. BlockFi liquidated 3AC’s collateral, claimed to be fine but a short while ago borrowed USDC 250 million from FTX. And there are numerous other names that have not nonetheless observed a “happy ending” for their security.

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