A Twitter account has accused the Bulgarian co-founders of the Swiss-based cryptocurrency lender Nexo of misappropriating funds from a charity platform. The company has rejected the allegations in the anonymous attack, which comes after Nexo offered a buyout deal to troubled rival Celsius.
Otteroooo cites reports by two Bulgarian websites — Bird.bg, or Bureau for Investigative Reporting and Data, and Lupa.bg, another supposedly investigative outlet. In the spring of 2018, the first found that Kalin Kantchev, Kosta’s father, had been installed on the management board of Helpkarma while the second established that as Helpkarma’s donations piled in, the instant loan provider Credissimo, featured in Nexo’s whitepaper as the platform that powers the crypto project, started to report capital increases.
One of the allegations is that donated money had been used to purchase real estate and finance personal travels. Another is that the charity handed out huge salaries and commissions to its management and staff, the total of which exceeded a 5-percent cap on such expenses, while also writing large invoices to related companies. Helpkarma withholds a portion of the received donations to finance its operations.
Kosta Kantchev has been presented as the beneficial owner of both Nexo and Credissimo, the online lending business of which is licensed by the central banks of several European countries. The two companies share the same co-founder but he is no longer a shareholder in Credissimo.
Nexo also claims the purpose of the whole undertaking was to monetize on followers. “The self-proclaimed ‘crypto patriot’ is looking to sell his profile for the right price, in an instant, as reported to Nexo by a person who attempted to buy the account,” the lender said, sharing a screenshot of a conversation with @otteroooo.
Besides providing crypto-backed loans, Nexo also offers clients a way to earn interest on crypto holdings. According to its website, the company has $12 billion in assets under management and 4 million users in different jurisdictions. Its platform currently supports close to 40 cryptocurrencies.
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