Nexo Issued Cease And Desist Notice To Twitter User Over Allegations

Nexo issued Cease and desist notice to a Twitter user that accused the platform and its founders of stealing funds for charities that are meant for children. Now, Nexo hit back as we can see more today in our latest cryptocurrency news.

Lender Nexo issued cease and desist order and according to the blog post, it clarified what it considers the recent comments made by Twitter user Otterooo to be only ludicrous allegations. Nexo said it will use all means necessary against hte statements and false allegations and accused the creator of the allegations of conducting a smear campaign against Nexo and making profits from short positions in the distressed market. Nexo even threatened legal consequences and said everyone engaging in an activity that is detrimental to the platform will be held accountable.

The lender refuted the claims of connection to the connection with a Bulgarian charity as well. Along with the response, Nexo issued a public cease and desist notice on the website. The allegations of fraud against Nexo came at a time when the lending sector is taking a huge hit during the market turndown. Starting from Celsius to Babel Finance, a few crypto lending platforms are having harsh liquditiy challenges. It all started when Otterooo posed tweets claiming that the Nexo founder and their families drained funds from HelpKarma which is a Bulgarian charity for children’s health and used the donations to buy real estate.

The Twitter user pointed out that Nexo raised funds from Arrington XRP capital that invested in TErra Luna, as well as other platforms like Chai and Anchor. They dragged the founder Michael Arrington and speculated if he made personal profits from the donations that were meant for sick kids. Much of the allegations center around Konsta Kanchev who reportedly is the founder of Nexo and HelpKarma however, the Nexo co-founder is indeed Kosta Kanchev while the charity founder is Constantin Krastev. The lender notified that Otteroo combined these names to make it sound like a typo:

“The truth, as usual, is simple: Nexo and the Bulgarian non-profit charity, accused of wrongdoing, have not and never had any common operations, common beneficial owners, or common management.”

The response from the community is divided. Delphi Digital’s General Counsel Gabriel Shapiro added that the Nexo decision to post this notice left him with a negative opinion.