logo

Nexo reacts to new Emblezzlement allegations and threatens legal action

Nexo
TL;DR Breakdown
  • Nexo Issues Cease and Desist Notice to Anonymous Twitter User Over Recent Allegations.
  • The crypto lender denied claims of affiliation with the purported Bulgarian charity.

 

Crypto lender Nexo published a blog post to address what it views as “a slate of absurd charges” in recent remarks made by a Twitter user going by the pseudonym “Otteroooo.”

The legal team at Nexo is looking for the user(s) of the Twitter handle “@otteroooo,” after a tweeting Mustelidae claimed that the company’s co-founders had siphoned funds from the HelpKarma charity.

Nexo declared that it would take legal action against any defamatory claims and false allegations made by specific Twitter accounts. The author of the allegation was charged with spreading false information about the crypto lender and making money from short positions in a volatile market.

The platform stated that everyone engaged in destructive conduct against Nexo would be held accountable and threatened legal repercussions.

The crypto lender denied claims of affiliation with the purported Bulgarian charity. In addition to responding, Nexo published a cease-and-desist message on their website.

Nexo accusations

Otteroooo claimed in a tweet thread that Kosta Kanchev, a co-founder of Nexo, stole money from the charity crowdfunding site HelpKarma while working as an executive to build “a castle the size of a high school.”

Otteroooo said that Arrington XRP Capital, which has previously invested in Terra Luna, the payments app Chai, and the Terra-based DeFi technology Anchor, had raised money for the crypto lender. Additionally, they dragged the Company’s creator Michael Arrington and made assumptions about whether he profited personally from the donations intended for sick children and whether he provided advice to “Nexo, Credissimo, or HelpKarma in this unscrupulous enterprise.”

Nexo reacting to these allegations noted that the creator of HelpKarma is Constantine Krastev, not Kosta Kanchev. Additionally,  he has little in common with Krastev in terms of appearance. The Crypto lender added that  Otteroo intentionally mixed the two names to “fake a typo as an explanation to fact-checkers,” 

In the meantime, Otteroooo claims that the crypto lender did not personally serve it with a Cease and Desist notice.

Divergent opinions have been expressed in the community. Gabriel Shapiro, general counsel at Delphi Digital, stated that he now has a negative opinion regarding the crypto lender’s choice to publish a cease and desist notice.

 On the other side, Terra leaker “Fat Man” claimed that facts in the initial post are just flat-out untrue. Some even continued to mock the decision that was posted as a blog post.

The accusations of fraud against Nexo occurred at a time when the market downturn significantly hurt the cryptocurrency lending industry. Several cryptocurrency lending platforms are experiencing liquidity issues, ranging from the troubled Celsius to Babel Finance.

Lacton Muriuki

Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

Related News

Hot Stories

Go Around the World with 1xBit and Win Crypto
Bitcoin, Binance Coin, ApeCoin, and Decentraland Daily Price Analyses – 8 August Morning Price Prediction
VisionsDao Exits Stealth Mode and Presents a Modular Stack for GameFi That Enables Sustainable Economies
Ethereum price analysis: ETH swiftly spikes above $1,760, quick retrace incoming?
Lawrence Dallaglio Appointed Strategic Global Advisor for Caduceus to bring Sport into the Metaverse

Follow Us

Industry News

Celsius withdraws motion to rehire CFO at $92,000 a month
Crypto.com earns license of operation in South Korea
Elon Musk drags Twitter to court for fraud
Binance CEO Urges To Move Funds From WazirX To Binance
Bitcoin falls to $23K on U.S. jobs report