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

A Twitter account has accused the Bulgarian co-founders of the Swiss-based cryptocurrency lender Nexo of misappropriating funds from a charity platform. The firm has rejected the allegations within the nameless assault, which comes after Nexo supplied a buyout deal to distressed rival Celsius.

Anonymous Allegations Against Co-Founders Circulated on Social Media

A Twitter consumer going by the deal with @otteroooo has drawn consideration to media reviews about misuse of donations to a charity allegedly linked to the folks behind Nexo, a serious supplier of crypto-backed loans. In a thread revealed on Sunday, the unidentified writer accuses Nexo co-founder Kosta Kantchev and his household of siphoning cash from the Helpkarma basis which raises funds for varied goodwill causes. Another two co-founders — former Member of Parliament and managing accomplice at Nexo Antoni Trenchev and Georgi Shulev — have been talked about as effectively.

NEXO FOUNDER & FAMILY SIPHONED FUNDS FROM CHARITY FOR SICK KIDS, USED DONATIONS AS PERSONAL SLUSH FUND, EVEN BUILT A PALACE FOR THEMSELVES

Evidences offered in full by otter beneath

no bueno!

🦦 👇🏼 🧵 🦦

— otteroooo (@otteroooo) June 26, 2022

Otteroooo cites reviews by two Bulgarian web sites — Bird.bg, or Bureau for Investigative Reporting and Data, and Lupa.bg, one other investigative outlet. In the spring of 2018, the primary discovered that Kalin Kantchev, Kosta’s father, had been put in on the administration board of Helpkarma whereas the second established that as Helpkarma’s donations piled in, the moment mortgage supplier Credissimo, featured in Nexo’s whitepaper because the platform that powers the crypto mission, began to report capital will increase.

One of the allegations is that donated cash had been used to buy actual property and finance private travels. Another is that the charity handed out big salaries and commissions to its administration and workers, the entire of which exceeded a 5-percent cap on such bills, whereas additionally writing giant invoices to associated firms. Helpkarma withholds a portion of the obtained donations to finance its operations. Kosta Kantchev has been offered because the helpful proprietor of each Nexo and Credissimo.

Nexo Accuses Otteroooo of Defamation, Issues Cease-and-Desist Notice

In a blog post dedicated to the Twitter tirade, Nexo labels it “click-bait faux information” and calls it “the most recent assault” on the corporate. It says it needs to refute the “ludicrous allegations for the sake of transparency and readability,” together with by highlighting sure discrepancies. For instance, Nexo famous that the person in a photograph known as “Konsta Kanchev”, is definitely not Nexo’s co-founder Kosta Kanchev however Helpkarma’s founder and Chairman Constantine Krastev.

Nexo additionally claims the aim of the entire enterprise was to monetize on followers. “The self-proclaimed ‘crypto patriot’ is trying to promote his profile for the suitable worth, instantly, as reported to Nexo by an individual who tried to purchase the account,” the lender stated, sharing a screenshot of a dialog with @otteroooo.

Leading Bulgarian bTV channel reported in December, that somewhat over a 12 months after it launched its personal investigation into the Helpkarma saga, Krastev has been charged with embezzlement whereas prosecutors in Sofia proceed their work to unravel the case.

“Nexo and the Bulgarian non-profit charity, accused of wrongdoing, haven’t and by no means had any widespread operations, widespread helpful homeowners, or widespread administration,” the crypto platform insisted. It additionally revealed a cease-and-desist letter to the unidentified particular person or group behind the tweets, accusing them of “malicious spreading of inaccurate, faux and unfounded data… with the only real intention to disparage, defame and discredit Nexo.”

Besides offering crypto-backed loans, Nexo additionally presents shoppers a strategy to earn curiosity on crypto holdings. According to its web site, the corporate has $12 billion in property beneath administration and 4 million customers in several jurisdictions. Its platform at present helps near 40 cryptocurrencies.

Earlier in June, Nexo introduced it had supplied to purchase the property of its competitor, Celsius Network, which is reportedly being probed by U.S. regulators over its determination to freeze withdrawals. Last week, Nexo unveiled it had employed Citigroup to advise it on offers to amass different crypto lenders. According to crypto media reviews, U.S. banking large Goldman Sachs can be a possible purchaser of the distressed property of Celsius.

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