Crypto lender Nexo released a blog post to clarify what it considers the recent comments made by a pseudonymous Twitter user “Otteroooo” to be “a slate of ludicrous allegations.”
Nexo said it will use any legally available means against the “defamatory” statements and false allegations” shared by certain Twitter accounts. It accused the originator of the allegation of conducting a smear campaign against Nexo and profiting from short positions in a distressed market.
Threatening legal consequences, the platform said, “everyone engaging in detrimental activity to Nexo will be held accountable.”
The crypto lender refuted claims of connection to the alleged Bulgarian charity. Along with the response, Nexo also issued a public cease and desist notice on its website.
The allegations of fraud against Nexo came at a time when the crypto lending sector took a significant hit during the market turndown. Starting from the embattled Celsius to Babel Finance, several crypto lending platforms are currently facing liquidity challenges.
It all started when Otteroooo posted a series of tweets claiming that the Nexo founder and their families siphoned funds from HelpKarma, a Bulgaria-based charity for children’s health, and used the donations to purchase real estate and fund “lavish personal travel.”
Otteroooo also pointed out that Nexo had raised funds from Arrington XRP Capital, which had previously invested in Terra...
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