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Twitter Consumer Accuses Nexo Of Embezzlement By way of Charity, Crypto Lender Denies Allegations CryptoBlog

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A Twitter account has accused the Bulgarian co-founders of Swiss-based cryptocurrency lender Nexo of embezzling funds from a charity platform. The corporate has dismissed claims within the nameless assault, which comes after Nexo supplied a takeover deal to struggling rival Celsius.

Nameless allegations towards the co-founders circulated on social media

A Twitter person going by the deal with @otteroooo has drawn consideration to media stories of the misuse of donations to a charity allegedly linked to the folks behind Nexo, a significant crypto lending supplier. In a thread printed on Sunday, the unidentified writer accuses Nexo co-founder Kosta Kantchev and his household of siphoning off cash from the Helpkarma basis that raises funds for varied goodwill causes. Two different co-founders – former MP and managing accomplice of Nexo Antoni Trenchev and Georgi Shulev – have been additionally talked about.

Otteroooo cites stories from two Bulgarian web sites – Chook.bg, or Bureau for Investigative Reporting and Knowledge, and Lupa.bg, one other investigative outlet. Within the spring of 2018, the previous found that Kalin Kantchev, Kosta’s father, had been put in on Helpkarma’s board of administrators whereas the latter established that as Helpkarma’s donations piled up , instantaneous mortgage supplier Credissimo, featured within the Nexo whitepaper because the platform powering the crypto mission, has began reporting capital raises.

One of many allegations is that the donated cash was used to buy actual property and fund private journey. One other is that the charity paid big salaries and commissions to its administration and workers, the overall of which exceeded a 5% cap on such bills, whereas writing massive payments to associated firms. Helpkarma retains a part of the donations acquired to finance its operations. Kosta Kantchev was launched because the helpful proprietor of Nexo and Credissimo.

Nexo accuses Otteroooo of defamation and points stop and desist discover

In a weblog put up devoted to Twitter’s tirade, Nexo calls it “faux information click-bait” and calls it “the most recent assault” on the corporate. He says he needs to refute the “ridiculous allegations for the sake of transparency and readability”, specifically by highlighting sure discrepancies. For instance, Nexo famous that the person in a photograph known as “Konsta Kanchev”, is definitely not Nexo co-founder Kosta Kanchev, however Helpkarma founder and president Constantine Krastev.

Nexo additionally claims that all the firm’s objective was to monetize subscribers. “The self-proclaimed ‘crypto patriot’ is seeking to promote his profile for the proper value, right away, as reported to Nexo by somebody who tried to purchase the account,” the lender stated, sharing a screenshot from a dialog with @otteroooo.

Twitter User Accuses Nexo of Embezzlement Through Charity, Crypto Lender Denies Allegations

First Bulgarian bTV channel reported in December, that simply over a yr after launching his personal investigation into the Helpkarma saga, Krastev was charged with embezzlement whereas prosecutors in Sofia proceed their work to unravel the case.

“Nexo and the Bulgarian non-profit charity, accused of wrongdoing, don’t and by no means have had joint operations, joint helpful house owners, or joint administration,” the crypto platform insisted. He additionally printed a stop and desist letter to the unidentified particular person or group behind the tweets, accusing them of “maliciously disseminating inaccurate, false and baseless info…for the only objective of disparaging, defaming and discrediting Nexo”.

Along with offering crypto-backed loans, Nexo additionally provides its clients a option to earn curiosity on crypto holdings. In response to its web site, the corporate has $12 billion in belongings underneath administration and 4 million customers in numerous jurisdictions. Its platform at the moment helps almost 40 cryptocurrencies.

Earlier in June, Nexo introduced that it had supplied to purchase the belongings of its competitor, Celsius Community, which might be questioned by US regulators over its resolution to freeze withdrawals. Final week, Nexo disclosed that it had employed Citigroup to advise it on offers to amass different crypto lenders. In response to crypto media, US banking large Goldman Sachs can be a possible purchaser of Celsius’ troubled belongings.

Key phrases on this story

Charity, Crypto, Crypto lender, crypto platform, Cryptocurrencies, Cryptocurrency, donations, embezzlement, basis, Fund, Helpkarma, lender, cash, Nexo, platform, thread, Tweet, tweets, Twitter

What do you consider the allegations and Nexo’s response? Inform us within the feedback part beneath.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Jap European journalist who loves Hitchens’ quote: “Being a author is who I’m, moderately than what I do.” Apart from crypto, blockchain and fintech, worldwide politics and economics are two different sources of inspiration.

Picture credit: Shutterstock, Pixabay, Wiki Commons, Shutterstock / TY Lim

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