Nexo Breaks Silence on Stolen Funds Allegations: Addressing the Controversy
Cryptocurrency lending platform Nexo is facing intense scrutiny following a series of allegations regarding stolen funds. The company, which is already under investigation in Bulgaria for alleged money laundering and tax offenses, has now addressed accusations stemming from multiple sources.
The Accusations Against Nexo: A Summary
The controversy began with a pseudo-anonymous Twitter account accusing Nexo’s founders of stealing funds from HelpKarma, a Bulgarian children\'s health charity, raising serious doubts about the platform\'s ethical practices. This accusation was further fueled by a Twitter thread where otteroooo alleged that Kosta Kanchev, a co-founder of Nexo, stole funds from HelpKarma while serving as an executive of the charity crowdfunding portal. The accusations quickly spread, prompting a response from Nexo.
Nexo Responds: "Smear Campaign" and Legal Action
Cryptocurrency lending platform Nexo has replied to these accusations, calling them a ‘Smear campaign’. Nexo has responded to accusations of stealing donations and siphoning funds from the charity, vehemently denying any wrongdoing. A pseudonymous Twitter account making a series of accusations against Nexo has triggered a cease and desist notice from the company. La plataforma de préstamos de criptomonedas Nexo ha respondido a lo que ha llamado noticias falsas y a los rumores de que sus fundadores formaban parte de un... (Nexo has responded to what it has called fake news and rumors that its founders were part of a... ).
Community Reactions and Further Claims
The allegations have sparked widespread discussion within the crypto community. In a Livestream and series of blog posts on Fulcrum, David Seaman and other Nexo customers claim that the company had taken advantage of the crypto market. These claims, coupled with the charity theft accusations, have significantly damaged Nexo\'s reputation.
Regulatory Scrutiny and Cease Operations Orders
Adding to Nexo\'s troubles, regulatory bodies have also taken action. In October 2025, Nexo and another cryptocurrency lending platform, Celsius, were ordered to cease operations in New York state for security and licensing breaches. This regulatory pressure further intensifies the scrutiny surrounding Nexo\'s business practices.
The Future of Nexo: Will the Platform Recover?
The combination of stolen funds allegations, regulatory investigations, and cease operations orders paints a concerning picture for Nexo. The company faces a significant challenge in restoring trust and proving its commitment to ethical and transparent operations. The outcome of the Bulgarian investigation and Nexo\'s response to the accusations will be crucial in determining the platform\'s future.