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Twitter User Accuses Nexo of Embezzlement Through Charity, Crypto Lender Denies Allegations – Bitcoin News


A Twitter account has accused the Bulgarian co-founders of Swiss-based crypto lending firm Nexo of embezzling funds from a charity foundation. The company denied the allegations in the anonymous attack, which came after Nexo offered a deal to acquire troubled rival C.

Anonymous allegations against the co-founders circulated on social media

A Twitter user using @otteroooo drew attention to media reports of the abuse of donations to a charity allegedly linked to the people behind Nexo, a offers large loans backed by cryptocurrencies. In one topic published on Sunday, the unidentified author alleges Nexo co-founder Kosta Kantchev and his family siphoned money from Help Fundraising platform for various goodwill purposes. Two other co-founders – former Member of Congress and managing partners at Nexo Antoni Trenchev and Georgi Shulev – were also mentioned.

Otteroooo cites the reports of two Bulgarian websites – Bird.bg, or Bureau of Investigative Data and Reporting, and Lupa.bg, another investigative establishment. In the spring of 2018, the first discovered that Kalin Kantchev, Kosta’s father, had been installed into Helpkarma’s management while the second established that when Helpkarma’s contributions were piled up, the Instant lending offering Credissimo, outlined in the whitepaper of Nexo as the platform that powers the crypto project, began reporting a capital raise.

One of the allegations is that the money raised was used to buy real estate and finance personal travels. Another problem was that the charity paid out huge salaries and commissions to its management and employees, totaling more than the 5% limit on those expenses, and billed large for the companies involved. Helpkarma retains a portion of the donations received to fund its operations. Kosta Kantchev is considered the beneficial owner of both Nexo and Credissimo.

Nexo accuses Otteroooo of defamation, Notice to stop and cancel issues

In one blog post for the social network Twitter, Nexo labeled it “click-through fake news” and called it “the latest attack” on the company. It said it wanted to refute “ridiculous allegations in the interest of transparency and clarity”, including highlighting certain differences. For example, Nexo notes that the man in the photo referred to as “Konsta Kanchev,” is not actually Kosta Kanchev, co-founder of Nexo but Helpkarma founder and Chairman Constantine Krastev.

Nexo also claims the purpose of the whole undertaking is to monetize followers. “The self-proclaimed ‘crypto patriot’ is looking to sell his profile at the right price instantly, as reported to Nexo by someone who tried to buy the account,” the lender said. know, share a screenshot of the conversation with @otteroooo.

Twitter users accuse Nexo of embezzlement through charity, accusations against crypto lenders

Top Bulgarian bTV channel report In December, more than a year after opening his own investigation into the Helpkarma story, Krastev was charged with embezzlement while prosecutors in Sofia continued their work to unravel the case.

The crypto platform emphasized: “Nexo and Bulgari’s non-profit charity, accused of misconduct, have not and have never had any joint activities, mutual beneficial owners or General Management”. It also publishes a stop and mail to the unidentified individual or group behind the tweets, accusing them of “maliciously spreading inaccurate, false, and baseless information… with the sole purpose of disparaging, libelous, and discrediting by Nexo.”

Besides offering crypto-backed loans, Nexo also offers customers a way to earn interest on crypto holdings. According to its website, the company has $12 billion in assets under management and 4 million users in various jurisdictions. Its platform currently supports nearly 40 cryptocurrencies.

In early June, Nexo announced it had offered to buy the asset of its competitor, Celsius Network, allegedly probe of US regulators on the decision to freeze withdrawals. Last week, Nexo revealed that it has hired Citigroup to advise them on acquisitions of other crypto lenders. According to crypto media reports, the US banking giant Goldman Sachs also a potential buyer for Celsius’s missing properties.

Cards in this story

Charity, Electronic money, Cryptocurrency Lenders, Cryptocurrency Platform, Electronic money, Electronic money, donations, embezzlement, communication, Expense, Help, lender, money, Nexo, communication, topic, tweet, tweets, Twitter

What do you think of the allegations and Nexo’s response? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quote: “Becoming a writer is in my nature, rather than what I do”. Besides cryptocurrency, blockchain and fintech, international politics and economics are two other sources of inspiration.




Image credits: Shutterstock, Pixabay, Wiki Commons, Shutterstock / TY Lim

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