Crypto lender 'Nexo' responds to 'smear campaign', issues cease and desist letter
Nexo's Response
Modified Date:- Published Date:-Categories: Cryptocurrency
Crypto lender 'Nexo' responds to 'smear campaign', issues cease and desist letter
Nexo has been the subject of a "smear campaign" this week alleging that the company misappropriated funds from charities and plagiarized donations. The crypto lender has now issued a cease-and-desist letter to @Otteroooo, the Twitter account behind the campaign.
Nexo's response
On June 26, Twitter user @Otteroooo(otter) shared a thread claiming that Nexo was guilty of stealing charity funding for lavish personal purchases.The tweet alleged that Nexo had targeted Bulgarian charity Helpkarma for theft. Reportedly, a 'Konsta Kanchev' was the co-founder of Nexo and the founder of Helpkarma, according to Otter. This 'Kanchev' is said to have redirected funds for the purpose of incorporating medical treatment for children into the construction of a private palace.
Naturally, Nexo was not very pleased with the so-called smear campaign, specifically responding that 'Konsta Kanchev' did not exist and that Otter had simply amalgamated the names of Nexo's chair and co-founder, Costa Kanchev,and the founder of Helpkarma, Konstantin Krustyev. Nexo also highlighted that it and HelpKarma never shared common operations, beneficial owners or management. Recent company movements discussed in December 2021 after Nexo pioneered NFT-backed lending services.
Thanks to a partnership with Singapore-based hedge fund Three Arrows Capital, Nexo clients were given the opportunity to borrow digital assets with their NFTs as collateral. At the time, the crypto lender was only accepting bored apes and cryptopunks.Recently, Nexo issued an offer to buy competitor Celsius, a crypto lender showing keen interest in its collateralized loan portfolio. Thanks to a series of frozen user withdrawals and transfers, Celsius then went one-way into bankruptcy.
The smear campaign led to comment by Bankruptcy showing their financial position as bankrupt. As a result of the smear campaign and Bankruptcy's non-response to it, Bankruptcy has been sent a cease and desist letter from Nexo's founders in response.