One Twitter account accused two co-founders from Bulgaria of Nexo, a Swiss cryptocurrency lender. They were accused of taking funds from charity platforms. Nexo has offered to buy Celsius out of trouble, but the company denies the claims in an anonymous attack.
Social Media has circulated anonymous accusations against co-founders
One Twitter user, @otteroooo, has brought attention to reports that donations were being misused by a charity linked to Nexo. Nexo is a prominent provider of crypto-backed loans. This is a threadThe anonymous author alleged that Kosta Kantchev, Nexo’s co-founder and family siphoned money from Helpkarma, which funds goodwill projects. Another two co-founders — former Member of Parliament and managing partner at Nexo Antoni Trenchev and Georgi Shulev — have been mentioned as well.
NEXO FOUNDER & FAMILY SIPHONED FUNDS FROM CHARITY FOR SICK KIDS, USED DONATIONS AS PERSONAL SLUSH FUND, EVEN BUILT A PALACE FOR THEMSELVES
Here are all the evidences provided by an otter
no bueno!
🦦 👇🏼 🧵 🦦
— otteroooo (@otteroooo) June 26, 2022
Otteroooo cites reports by two Bulgarian websites — Bird.bg, or Bureau for Investigative Reporting and Data, and Lupa.bg, another investigative outlet. In the spring of 2018, the first found that Kalin Kantchev, Kosta’s father, had been installed on the management board of Helpkarma while the second established that as Helpkarma’s donations piled in, the instant loan provider Credissimo, featured in Nexo’s whitepaper as the platform that powers the crypto project, started to report capital increases.
The allegations include the claim that donations were used for personal travels and real property purchases. The charity also claimed that it paid huge commissions and salaries to its staff and management, exceeding a 5-percent limit on these expenses. It also wrote large invoices for related businesses. Helpkarma retains some of the donations received to fund its operations. Kosta Kantchev was presented as Nexo’s beneficial owner.
Nexo accuses Otteroooo de Defamation and Issues a Cease-and Desist Notification
In a blog post devoted to the Twitter tirade, Nexo labels it “click-bait fake news” and calls it “the latest attack” on the company. It says it wants to refute the “ludicrous allegations for the sake of transparency and clarity,” including by highlighting certain discrepancies. For example, Nexo noted that the man in a photo referred to as “Konsta Kanchev”, is actually not Nexo’s co-founder Kosta Kanchev but Helpkarma’s founder and Chairman Constantine Krastev.
Nexo claimed that this whole endeavor was meant to generate revenue from his followers. “The self-proclaimed ‘crypto patriot’ is looking to sell his profile for the right price, in an instant, as reported to Nexo by a person who attempted to buy the account,” the lender said, sharing a screenshot of a conversation with @otteroooo.
A leading Bulgarian TV channel reported December that Krastev, a little more than a year ago, was indicted for embezzlement. Prosecutors in Sofia are continuing to work on the case.
“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 crypto platform insisted. It also published a cease-and-desist letter to the unidentified individual or group behind the tweets, accusing them of “malicious spreading of inaccurate, fake and unfounded information… with the sole intention to disparage, defame and discredit Nexo.”
Nexo not only offers cryptocurrency-backed loans but also allows clients to make interest on their crypto holdings. The company claims to have $12 billion of assets and over 4 million users across different countries. The company’s platform is currently supported by close to 40 cryptos.
Nexo made an announcement in June about its offer to acquire the assets Celsius Network’s competitor. The company is being probed by U.S. regulators for its decision to stop withdrawals. Nexo revealed last week it had appointed Citigroup to assist it with deals to acquire crypto lenders. According to crypto media, Goldman Sachs in the United States is also looking for distressed assets from Celsius.
What are your thoughts on the allegations and Nexo’s response? Please leave your comments below.
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