After the Bulgarian offices of crypto lender Nexo were raided, the digital currency lending platform experienced a significant amount of withdrawals as of January 12, 2023. An archived snapshot of Nexo’s real-time attestation shows that the company had 133,263 bitcoins that day. As of January 13, 2023, Nexo’s certification indicates that the company now holds 124,939 bitcoins, with $157.21 million worth of bitcoins being withdrawn in the last 24 hours.
Clients Withdraw $157 Million in Bitcoin from Nexo Platform in 24 Hours
Last year, several exchanges underwent withdrawal stress tests, and after nexusThe office raid on Thursday, the crypto lender is dealing with similar issues. Reports on January 12, 2023 revealed that Nexo is under investigation by the Bulgarian Attorney General and approximately 300 investigators from various agencies. The company is accused of violating tax requirements, engaging in money laundering, and circumventing financial sanctions associated with the Russian Federation.
Nexo has denied any wrongdoing and immediately issued a statement on Twitter to the community that the company adheres to “very strict anti-money laundering and know-your-customer policies.” After the incident, the company has seen a flurry of recalls according to its real-time attestation website. for example in January 3, 2023Nexus had around 134,203 bitcoins, valued at $2.5 billion using current BTC exchange rates. By January 12, 2023, the crypto lender BTC the stash had decreased to 133,263 bitcoins.
Twenty-four hours later, on Friday, January 13, 2023, Nexo’s BTC Stash had decreased by 8,324 BTC at the current level of 124,939 BTC. This means that using the current BTC exchange rates, $157.21 million was withdrawn from the Nexo bitcoin cache. The Nexo withdrawals follow a number of other exchanges that have seen large withdrawals in a short period of time. After the FTX crash, users withdrew a significant amount of digital assets from exchanges like Binance, Kucoin, and Crypto.com.
It is not clear what will happen with the case against Nexo in Bulgaria, but with the rate of withdrawals over the last day, it seems that clients are worried. When talking to The Block reporter Khatri Yogitaco-founder of Nexo Anthony Trenchev It said the withdrawals represented just 2% of the company’s assets under management (AUM). “Nexo can confirm that all systems are up and running and everything is processed in real time, as always,” Trenchev saying Khatri on Friday. “The activity is much smaller than after Celsius and after FTX,” added the Nexo executive.
What do you think about the recent Nexo withdrawals and the ongoing investigation in Bulgaria? Share your thoughts in the comments below.
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