Nexo dismisses claims it defrauded a children’s charity as fake news Samuel Wan · 3 days ago · 2 min read
Nexo responds to “ludicrous allegations” of defrauding a charity by calling on the community to exercise their better judgment.
2 min read
Updated: June 27, 2022 at 2:02 pm
Cover art/illustration via CryptoSlate
In a recent blog post, Nexo responded to the “ludicrous allegations” levied at it as “obvious lies and smear campaigns.”
The lending and borrowing platform called on readers to ignore the fake news and stay informed during these challenging times.
Short sellers looking to profit via “fake news”
Nexo claims it is the victim of smear campaigns by anonymous Twitter accounts, intending to profit by short-selling during “a distressed market.”
“Several anonymous Twitter accounts are using lies and distortion in yet another smear campaign against Nexo and profiting from short positions in a distressed market.”
In backing up the claim, Nexo laid out the “typical formula” for fake news to educate readers on what to look out for.
Nexo said the method begins by making an “unfathomable” claim to manipulate readers into abandoning logic while simultaneously gaining an online following through sensationalization.
Although Nexo mentioned being attacked by several anonymous Twitter accounts, it singled out @otteroooo, particularly a tweet accusing the company founders of siphoning funds from a charity.
NEXO FOUNDER & FAMILY SIPHONED FUNDS FROM CHARITY FOR SICK KIDS, USED DONATIONS AS PERSONAL SLUSH FUND, EVEN BUILT A PALACE FOR THEMSELVES
Evidences presented in full by otter below
🦦 👇🏼 🧵 🦦
— otteroooo (@otteroooo) June 26, 2022
To discredit the accuser, Nexo presented screenshots of a conversation in which @otteroooo asked for USDC 50,000 to sell the Twitter account.
Moreover, claims of siphoning funds from a Bulgarian children’s charity related to a man called Constantine Krastev. The Nexo co-founder is Kosta Kantchev, a different person entirely.
Other techniques mentioned by Nexo include “decorating claims” with intriguing but irrelevant information, associating with government organizations, censoring comments to control the narrative, and pretending to have noble intentions.
The post signed off by calling on readers to exercise judgment in distinguishing real news from fake news with an agenda to profit from the fallout.
“In the midst of all the noise, sometimes it is hard to distinguish what is worthy of your attention and what tries to profit financially from it.”
@otteroooo remains defiant, calling Nexo’s “Bulgarian mafia tricks” a “cute” attempt to silence him. He claims the Twitter account buying discussion was an attempt to silence him and slander his reputation.
NEXO’S FAILED TRICKS TO SILENCE OTTER
Nexo Bulgarian mafia tricks are cute
thread shows how otter trolled suspected Nexo alt account
Otter knew it was a set up to buy the account to silence otter
Come see how they try and slander otter
and try get info on my Nexo posts
— otteroooo (@otteroooo) June 27, 2022
Nexo claims it is solvent
The fallout from crypto winter has several platforms under pressure. However, Nexo claims its prudent approach and strict risk management strategy have positioned it well in this challenging period.
At the height of the Three Arrows Capital (3AC) disaster, Nexo tweeted that it had zero exposure to the firm. Two years ago, Nexo said they declined an unsecured credit line from 3AC, having discovered they were simply a middleman in that deal.
Оver 2 years ago, we declined 3AC’s request for unsecured credit. We learned that they acquired it elsewhere.
It is now obvious that Nexo’s approach was correct. This is why our assets exceed our liabilities:https://t.co/nKmWs2ckte
— Nexo (@Nexo) June 15, 2022