Nexo-linked addresses see outflows of nearly $9M amid rising FUD Nexo-linked addresses see outflows of nearly $9M amid rising FUD
Nexo's real-time attestation by Armanino showed that its customer's liabilities were $2.42 billion (133,263 Bitcoin) as of Jan. 12.
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Updated: Jan. 12, 2023 at 10:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
On-chain data shows that addresses related to crypto lender Nexo are recording outflows following news of financial crimes investigations by the Bulgarian government.
Crypto intelligence platform Arkham Intelligence dashboard showed that the crypto lender had seen outflows of roughly $9 million since the news broke.
A breakdown of the transactions showed that Nexo’s address, 0xFfe, saw the majority of the withdrawals.
According to the data, the withdrawals were populated by transactions from retail investors who majorly deposited to centralized exchanges like Binance, Kraken, etc.
Meanwhile, Nexo’s real-time attestation by Armanino showed that its customer’s liabilities were $2.42 billion (133,263 Bitcoin) as of Jan. 12.
FUD spreads on Nexo
Several crypto community members believe that Nexo could be the next victim of a crypto contagion that has taken several other companies by storm.
A partner at MetaCartel Ventures DAO, Adam Cochran, said Nexo would be “the last of the shady centralized stakers (to) fall.” He added that the firm had argued with him that its operations “were super clean and audited.”
Ram Ahluwalia, the CEO of Lumida Wealth, added that he had called out “Nexo’s nonsense back in June and on Laura Shin’s podcast.”
Meanwhile, several others urged the lender’s clients to withdraw their assets from the platform.
CryptoSlate’s data shows that Nexo’s native token declined by 1.45% to $0.71 as of press time.
Nexo’s co-founder and managing partner Antoni Trenchev described news of its investigation as “absurd.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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The Nexo token is the world’s first dividend-paying asset-backed security token and is backed by the underlying assets of Nexo’s loan portfolio.
Nexo
Nexo is a leading global financial institution specializing in digital asset services, particularly focusing on cryptocurrency lending, exchange, and financial management solutions.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
