Crypto lending firm Nexo appears to be in trouble as reports of it stealing funds circulate. A series of tweets has claimed that Nexo’s co-founders siphoned funds from a charity, to which the crypto firm has responded with a cease and desist letter to debunk the claims.
The Twitter account @otteroooo has slammed Kosta Kantchev, Antoni Trenchev, and Georgi Shulev, the Nexo co-founders accused of stealing funds from the HelpKarma charity for children’s health.
In 2020, Bulgarian news outlets discovered a major scandal involving HelpKarma. The BIRD (Bureau of Investigative Reporting & Data) discovered that millions of dollars in donations to HelpKarma were diverted into the pockets of board members as rewards, bonuses, and loans.
In the investigation, Kalin Konsta Kanchev, Kosta Kantchev’s father, was named as having embezzled those funds.
In fact, the two other Nexo co-founders are also well connected, as Antoni is a former member of the Bulgarian parliament and Georgi is the son of former Bulgarian Deputy Prime Minister Lydia Shuleva.
The Bulgarian news media has been constantly reporting on the Help Karma donation collection platform. Out of the over BGN 13.5 million donated, huge sums have been diverted from Help Karma by writing invoices and other accounting works.
Credissimo reported a huge increase in capital in the last year, with an increase in assets of over 26% and the addition of another BGN 2 million to the capital of the associated company with the same shareholders, CredisimoSuper.
Nexo also received funding from Arrington XRP Capital. Natalia Karayaneva, the daughter of Vetko and Marinela Arabadjievi, who were arrested for money laundering and tax fraud, is the link between Arrington XRP Capital and Nexo. It is known for its investments in Luna Terra, Chai, and Anchor.
Nexo is powered by Credissimo, according to the whitepaper. Kosta Kantchev, the beneficial owner of Nexo and Credissimo, is now accused of siphoning donated HelpKarma funds to raise capital for these companies.
Nexo published two items on its website: one was a cease and desist letter aimed at the Twitter account, and the other was a blog post that attempted to debunk some of @otteroooo’s claims.
Nexo denies the allegations, claiming that Nexo and the Bulgarian non-profit charity have never had any common operations, beneficial owners, or management.
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