Nexo responds to allegations of theft of donations and diversion of funds to charity

The cryptocurrency lending platform Nexo has responded to so-called “fake news” and rumors that its founders were part of a charity embezzlement scandal; said the allegations were false and defamatory. She has given the originator of the allegations a public cease and desist.

In a blog post about the claims, Nexo explained:

“Multiple anonymous Twitter accounts are using lies and distortions in yet another smear campaign against Nexo, profiting from short positions in a troubled market.”

The pseudonymous Twitter account otteroooo, who calls himself “Otter”, has posted a number of tweets on June 25, in which he claimed Nexo co-founders stole funds from Bulgarian charity HelpKarma to buy properties and fund “lavish private travel”..

Nexo responds to allegations of theft of donations and diversion of funds to charity
Nexo responds to allegations of theft of donations and diversion of funds to charity

The thread found a large audience on Twitterand Otter shared a screenshot which had received more than 9 million impressions, Requesting Nexo to respond to the allegedly “ridiculous allegations” and issue the cease and desist letter.

Otter’s main allegation is that HelpKarma founder and Nexo co-founder “Konsta Kanchev” used the donations to build a palace instead of using the money for medical treatment of children..

A response from Nexo notes that “Konsta Kanchev” does not exist and that Otter intentionally created the name “to mimic a typo as an apology” by naming two different people, HelpKarma founder Constantine Krastev and Nexo co-founder , Kosta Kantchev, confused as identical person.

Speaking to Cointelegraph about the confusion between the two, Otter shared an article from Bulgarian outlet Fakti, in which he said the two were cousins ​​and that Constantine is spelled “Konstantin” in Bulgarian.but has not commented since then.

Another of Otter’s main allegations is this As HelpKarma donations increased, lending company Credissimo began reporting sizeable increases in its capital, citing a November 2020 report by Fakti that implied donations were used to fund Credissimo..

As for the connection of this scandal to Nexo, Otter notes that Nexo’s whitepaper says it is “powered by Credissimo”.. Credissimo was founded by Kantchev and Nexo’s co-founders Georgi Shulev and Antoni Trenchev were respectively responsible for the companies’ business development and innovation.

In response to complaints, Nexo said that it and HelpKarma “did not and never had common operations, common beneficial owners, or common management.”and added:

“‘Why would a company with hundreds of millions in revenue and billions in assets under management audited by Fidelity, Mastercard and dozens of regulators ever have to resort to petty theft, let alone children with medical needs?’ That is the logical but forgotten question.”

Cointelegraph has reached out to Nexo for comment on the allegations, but has yet to receive a response.

The main reason Nexo claims Otter released the allegations is so Otter could gain a large following and sell his account..

Nexo shared pictures of a person trying to buy Otter’s account, to which Otter replies that he wants at least $50,000 (USDC) for it.

in one thread The Twitter account, posted by Otter on June 26, says he suspects the news is a “setup” to buy the account so Nexo can silence him. Instead, he “created a troll plan” to sell Otter’s account to collect Nexo’s “hush money” and create another account to “further expose the company.”

Nexo says this isn’t the first time they’ve been part of a so-called “coordinated attack.”citing 2020 claims that he was behind Zeus Capital, an asset management firm that sought to take down Chainlink (LINK).

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