FUD Attack On Nexo? Nexonians Support CeFi Crypto Lender Over Wrapped Bitcoin (WBTC) Withdrawal From MakerDAO

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FUD Attack On Nexo? Nexonians Support CeFi Crypto Lender Over Wrapped Bitcoin (WBTC) Withdrawal From MakerDAO

Following regulatory pressure and investor concerns, a crypto wallet address labeled NEXO 0x8fd withdrew roughly $153 million in Wrapped Bitcoin (wBTC) from MakerDAO. 

On Sept. 26, eight United States states issued a cease-and-desist order against Nexo for offering unregistered securities to investors without warning. Additionally, Kentucky regulators accused Nexo of insolvency owing to liabilities exceeding assets when excluding Nexo.

Following suit, on Sept. 30, blockchain investigator Peckshield alerted the transfer of 7,758.8 wBTC from MakerDAO.  It was the name of the wallet – Nexo: 0x8fd – that prompted the crypto community to link the fund withdrawal to Nexo’s insolvency rumors.

As shown above, the total value locked (TVL) on MakerDAO has suffered a decline of 43.3% over the past year, which currently stands at $7.11 billion.

Transaction details overview. Source: Peckshield

Transaction details show the transfer of $50.1 million worth of Dai (DAI) tokens from Nexo: 0x8fd to a null address (possibly a burn address) via DSProxy. As highlighted in the above screenshot, the transaction hash also confirms the transfer of $153.2 million in wBTC.

A Nexo spokesman informed a news outlet that the monies are still in the publicly labelled Nexo wallet, despite widespread suspicion of misconduct in the cryptocurrency community. As per the statement:

This routine transaction made yesterday represents a loan repayment in line with the latest market dynamics and as per the company’s standard treasury management.

Nexo stated that the cited transaction was driven by Nexo’s operational needs at the time.

As a result, and again driven by the current market context, we expect the loan size at Maker to continue to fluctuate in correlation with market volatility.

Data from Etherscan shows that Nexo also transferred $530 million to MakerDao and opened three loans on the same day, further confirming that the transactions in question were made for Nexo’s operational capital needs.

Data from Etherscan

Nexo continues to expand its business despite the ongoing FUD. Most recently, Nexo acquired a stake in Hulett Bancorp, a holding company that owns a federally chartered Summit National Bank.

Through the acquisition, Nexo and its customers will be able to open bank accounts at Summit National Bank.Morevoer, Nexo will be able to offer its U.S. based retail and institutional clients access to asset-back loans, card products, and escrow and custodial solutions through Summit.

Nexo has also shared their stance on U.S. State Regulators Cease & Desist order stating:

As the recent months have clearly underlined, Nexo is a very different provider of earn interest products, as showcased by the fact that it did not engage in uncollateralized loans, had no exposure to LUNA/UST, did not have to be bailed out or needed to resort to any withdrawal restrictions.

Nexonians Stand In Support

It is also worth noting that Nexo community members are wary of the misinformation and market FUD being spread around by various news channels and come in full support of Nexo. 

(Source : Reddit )

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