- Nexo’s counterclaims became necessary as the allegations of funds diversion gained ground over the weekend.
- The crypto lending firm accuses the Twitter account of chasing clout by making fake claims against it.
Crypto lending platform, Nexo, has put out a counterclaim that its founders and executives have been diverting funds meant for the company’s charity for other purposes. Nexo’s official statement said the allegations were false and defamatory. Hence, the need to publicly release a cease and desist notice to the author of this fake news.
Part of Nexo’s blog post regarding the matter reads,
we are seeing a rising number of Twitter accounts spreading lies and confusion about Nexo. We believe they are using the current market situation to make some gains from what they are doing.
Claims and counterclaims
The Twitter account with the username @Otteroooo but called themselves Otter released several tweet series on June 25. The tweets claimed that the founders of the crypto lending platform diverted funds from HelpKarma (the company’s charity) to purchase real estate and fund their lavish lifestyles.
After Otter tweeted a screenshot of their thread amassing 9 million impressions, Nexo felt the need to respond. The crypto lending platform called the allegations ludicrous before releasing a legally binding order regarding the matter.
One major claim by Otter is that “Konsta Kantchev” (one Nexo’s founders and founder of the HelpKarma charity) wasn’t using donations to the charity to assist with treating children’s medical ailments. Instead, he was using the funds to build a palace – a size comparable to a high school.
Nexo’s detailed response
According to Nexo, neither its founders nor the founder of HelpKarma bears the name “Konsta Kantchev.” Nexo further claimed that Otter typed the wrong name intentionally to confuse those who would be confirming the names. The name of Nexo’s co-founder is Kosta Kantchev, while the name of HelpKarma’s founder is Constantine Krastev.
Hence, the two persons aren’t the same. Speaking with a popular media outlet, Otter claimed that the two persons are related. It cited a now-removed article from Bulgarian media firm, Fakti as a reference. Otter added that the two persons are cousins, and the Bulgarian spelling for Constantine is “Konstantin.”
However, it is yet to provide additional comments since then. Otter also claimed that Credissimo’s earnings report, as reported by Fakti in November 2020, increased at the same time HelpKarma’s donations were rising. Hence, it concluded that the donations to the charity firm were used to fund the payday loans firm (Credissimo).
Otter explained the relationship between Nexo and the loan company. It said Nexo’s white paper displays ‘powered by Credissimo.’ Research showed that Kantchev, Antoni Trenchev, and Georgi Shulev are Nexo co-founders. The latter two were the firm’s innovation officer and business development officer, respectively.
Nexo discredits mutual ownership claims
However, Nexo’s counterclaim was that the crypto lender and the charity have no mutually beneficial owners, management, or operations. “The logical but unanswered question is, what would a company managing billion-dollar worth of assets start stealing? It is unthinkable that a company with millions in revenues vetted by multiple regulators be stealing from children with medical needs.”
Nexo added that Otter only wants a large following and posted screenshots where Otter requested the sum of $50,000 to stop the tweet attacks. However, Otter posted a tweet response saying they have a backup plan to keep exposing Nexo even though it followed along with the “shut up buy” plan.
Nexo claims that a coordinated attack on the firm isn’t new. According to them, the firm was also accused of attempting to use an asset management company, Zeus capital, to short Chainlink (LINK) two years ago.