A Twitter account has accused the Bulgarian co-founders of the Swiss-based cryptocurrency lender Nexo of misappropriating funds from a charity platform. The corporate has rejected the allegations within the nameless assault, which comes after Nexo supplied a buyout deal to distressed rival Celsius.
Nameless Allegations In opposition to Co-Founders Circulated on Social Media
A Twitter person going by the deal with @otteroooo has drawn consideration to media experiences about misuse of donations to a charity allegedly linked to the folks behind Nexo, a significant supplier of crypto-backed loans. In a thread revealed on Sunday, the unidentified creator accuses Nexo co-founder Kosta Kantchev and his household of siphoning cash from the Helpkarma basis which raises funds for numerous goodwill causes. One other two co-founders — former Member of Parliament and managing accomplice at Nexo Antoni Trenchev and Georgi Shulev — have been talked about as properly.
NEXO FOUNDER & FAMILY SIPHONED FUNDS FROM CHARITY FOR SICK KIDS, USED DONATIONS AS PERSONAL SLUSH FUND, EVEN BUILT A PALACE FOR THEMSELVES
Evidences introduced in full by otter under
🦦 👇🏼 🧵 🦦
— otteroooo (@otteroooo) June 26, 2022
Otteroooo cites experiences by two Bulgarian web sites — Chook.bg, or Bureau for Investigative Reporting and Knowledge, and Lupa.bg, one other investigative outlet. Within the spring of 2018, the primary discovered that Kalin Kantchev, Kosta’s father, had been put in on the administration board of Helpkarma whereas the second established that as Helpkarma’s donations piled in, the moment mortgage supplier Credissimo, featured in Nexo’s whitepaper because the platform that powers the crypto venture, began to report capital will increase.
One of many allegations is that donated cash had been used to buy actual property and finance private travels. One other is that the charity handed out enormous salaries and commissions to its administration and workers, the overall of which exceeded a 5-percent cap on such bills, whereas additionally writing massive invoices to associated corporations. Helpkarma withholds a portion of the acquired donations to finance its operations. Kosta Kantchev has been introduced because the helpful proprietor of each Nexo and Credissimo.
Nexo Accuses Otteroooo of Defamation, Points Stop-and-Desist Discover
In a weblog publish dedicated to the Twitter tirade, Nexo labels it “click-bait pretend information” and calls it “the most recent assault” on the corporate. It says it desires to refute the “ludicrous allegations for the sake of transparency and readability,” together with by highlighting sure discrepancies. For instance, Nexo famous that the person in a photograph known as “Konsta Kanchev”, is definitely not Nexo’s co-founder Kosta Kanchev however Helpkarma’s founder and Chairman Constantine Krastev.
Nexo additionally claims the aim of the entire endeavor was to monetize on followers. “The self-proclaimed ‘crypto patriot’ is trying to promote his profile for the suitable worth, instantly, as reported to Nexo by an individual who tried to purchase the account,” the lender stated, sharing a screenshot of a dialog with @otteroooo.
Main Bulgarian bTV channel reported in December, that slightly over a 12 months after it launched its personal investigation into the Helpkarma saga, Krastev has been charged with embezzlement whereas prosecutors in Sofia proceed their work to unravel the case.
“Nexo and the Bulgarian non-profit charity, accused of wrongdoing, haven’t and by no means had any frequent operations, frequent helpful homeowners, or frequent administration,” the crypto platform insisted. It additionally revealed a cease-and-desist letter to the unidentified particular person or group behind the tweets, accusing them of “malicious spreading of inaccurate, pretend and unfounded info… with the only real intention to disparage, defame and discredit Nexo.”
In addition to offering crypto-backed loans, Nexo additionally gives shoppers a solution to earn curiosity on crypto holdings. Based on its web site, the corporate has $12 billion in belongings beneath administration and 4 million customers in several jurisdictions. Its platform presently helps near 40 cryptocurrencies.
Earlier in June, Nexo introduced it had supplied to purchase the belongings of its competitor, Celsius Community, which is reportedly being probed by U.S. regulators over its resolution to freeze withdrawals. Final week, Nexo unveiled it had employed Citigroup to advise it on offers to accumulate different crypto lenders. Based on crypto media experiences, U.S. banking large Goldman Sachs can also be a possible purchaser of the distressed belongings of Celsius.
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