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Nexo responds to accusations of stealing donations, siphoning funds from charity

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Cryptocurrency lending platform Nexo has hit again at what it known as “fake news” and rumors that its founders have been a part of a charity embezzlement scandal, saying the claims are unfaithful and defamatory. It has issued a public stop and desist discover to the originator of the allegations.

In a weblog submit concerning the claims, Nexo acknowledged:

“Several anonymous Twitter accounts are using lies and distortion in yet another smear campaign against Nexo and profiting from short positions in a distressed market.”

The pseudonymous Twitter account otteroooo, who calls themselves “Otter,” posted a collection of tweets on June 25, claiming that Nexo’s co-founders stole funds from the Bulgarian charity HelpKarma to purchase actual property and fund “lavish personal travel”.

The thread garnered a big viewers on Twitter, with Otter sharing a screenshot that it had obtained over 9 million impressions, prompting Nexo to reply to what they are saying are “ludicrous allegations” and situation the stop and desist discover.

The central allegation Otter makes is that the founding father of HelpKarma and co-founder of Nexo “Konsta Kanchev” used funds from donations to assist construct a palace as an alternative of utilizing the cash for youngsters’s medical remedies.

In a response by Nexo it factors out {that a} “Konsta Kanchev” doesn’t exist and Otter intentionally made the title “to mimic a typo as an excuse to fact-checkers” by complicated two separate folks, HelpKarma founder Constantine Krastev and Nexo co-founder Kosta Kantchev, as the identical individual.

Speaking to Cointelegraph relating to conflating the 2, Otter shared a delisted article from the Bulgarian outlet Fakti saying the 2 are cousins and that Constantine in Bulgarian is spelled “Konstantin” however has since not supplied additional commentary.

Another main allegation Otter makes is that as HelpKarma’s donations elevated, the payday loans firm Credissimo began to report appreciable will increase in its capital, citing a November 2020 report by Fakti, implying that the donations have been used to fund Credissimo.

On how this scandal hyperlinks to Nexo, Otter factors out that Nexo’s white paper says it is “powered by Credissimo.” Credissimo was based by Kantchev, and Nexo co-founders Georgi Shulev and Antoni Trenchev have been the businesses’ enterprise growth and innovation officers, respectively.

In response to the claims, Nexo stated that it and HelpKarma “have not and never had any common operations, common beneficial owners or common management,” including:

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

Cointelegraph contacted Nexo for touch upon the allegations and is but to obtain a response.

Related: Don’t click on hyperlinks: Crypto neighborhood responds to alleged Telegram ‘exposé’

The fundamental motive Nexo states as for why Otter posted the allegations is in order that Otter can acquire a big following and promote the account.

Nexo shared photos of a person who tried to buy Otter’s account, to which Otter responds they need a minimal of $50,000 USD Coin (USDC) for it.

But in a Twitter thread posted by Otter on June 26, they declare they suspected the messages to be a “set up” to purchase the account in order that Nexo may silence them. They as an alternative “hatched a troll plan” to promote the Otter account to gather Nexo’s “silence money” and make one other account to “continue exposing them.”

Nexo says this isn’t the primary time they’ve been a part of what they name a “coordinated attack,” citing the 2020 accusations that it was behind Zeus Capital, an asset administration agency that needed to brief Chainlink (LINK).