Nexo responds to accusations of stealing donations, siphoning funds from charity

The pseudonymous Twitter account otteroooo, who calls themselves “Otter,” posted a sequence of tweets on June 25, claiming that Nexo’s co-founders stole funds from the Bulgarian charity HelpKarma to purchase actual property and fund “lavish private journey”.

NEXO FOUNDER & FAMILY SIPHONED FUNDS FROM CHARITY FOR SICK KIDS, USED DONATIONS AS PERSONAL SLUSH FUND, EVEN BUILT A PALACE FOR THEMSELVES

Evidences offered in full by otter beneath

no bueno!

— otteroooo (@otteroooo) June 26, 2022

The thread garnered a big viewers on Twitter, with Otter sharing a screenshot that it had obtained over 9 million impressions, prompting Nexo to respond to what they are saying are “ludicrous allegations” and problem the stop and desist notice.

The central allegation Otter makes is that the founding father of HelpKarma and co-founder of Nexo “Konsta Kanchev” used funds from donations to assist construct a palace as an alternative of utilizing the cash for youngsters’s medical therapies.

Konsta Kanchev (Bulgarian Boy 1) embezzled the funds and went on to construct a muthaf*ckin PALACE, “the scale of a highschool”

The cash got here from the donations of greater than 130,000 Bulgarians who readily donated into what they thought was meant for medical therapy for youngsters pic.twitter.com/NCd7TLbF4A

— otteroooo (@otteroooo) June 26, 2022

In a response by Nexo it factors out {that a} “Konsta Kanchev” doesn’t exist and Otter intentionally made the identify “to imitate a typo as an excuse to fact-checkers” by complicated two separate individuals, HelpKarma founder Constantine Krastev and Nexo co-founder Kosta Kantchev, as the identical particular person.

Talking to Cointelegraph relating to conflating the 2, Otter shared a delisted article from the Bulgarian outlet Fakti saying the 2 are cousins and that Constantine in Bulgarian is spelled “Konstantin” however has since not supplied additional commentary.

One other main allegation Otter makes is that as HelpKarma’s donations elevated, the payday loans firm Credissimo began to report appreciable will increase in its capital, citing a November 2020 report by Fakti, implying that the donations had been used to fund Credissimo.

On how this scandal hyperlinks to Nexo, Otter factors out that Nexo’s white paper says it is “powered by Credissimo.” Credissimo was based by Kantchev, and Nexo co-founders Georgi Shulev and Antoni Trenchev had been the businesses’ enterprise improvement and innovation officers, respectively.

In response to the claims, Nexo stated that it and HelpKarma “haven’t and by no means had any frequent operations, frequent helpful house owners or frequent administration,” including:

“‘Why would an organization with lots of of tens of millions in revenues and billions of property below administration, vetted by Constancy, Mastercard and dozens of regulators ever should resort to petty theft, not to mention from youngsters with medical wants?’ is the logical but uncared for query.”

Cointelegraph contacted Nexo for touch upon the allegations and is but to obtain a response.

Related: Don’t click links: Crypto community responds to alleged Telegram ‘exposé’

The principle motive Nexo states as for why Otter posted the allegations is in order that Otter can acquire a big following and promote the account.

Nexo shared photographs of a person who tried to buy Otter’s account, to which Otter responds they need a minimal of $50,000 USD Coin (USDC) for it.

However in a Twitter thread posted by Otter on June 26, they declare they suspected the messages to be a “arrange” to purchase the account in order that Nexo might silence them. They as an alternative “hatched a troll plan” to promote the Otter account to gather Nexo’s “silence cash” and make one other account to “proceed exposing them.”

Nexo says this isn’t the primary time they’ve been a part of what they name a “coordinated assault,” citing the 2020 accusations that it was behind Zeus Capital, an asset administration agency that wished to brief Chainlink (LINK).