"Insolvency, Bankruptcy is Nowhere in Nexo's reality": Co-Founders
Speculations about crypto lender Nexo heading towards bankruptcy were squashed by the company's top-ranking members.
In an ‘Ask-Me-Anything’ YouTube video on Tuesday co-founders of Nexo, Antoni Trenchev and Kalin Metodiev addressed a series of inquiries, where one participant asked whether their lending platform could be the next Celsius Network Ltd. or Voyager Digital Ltd., both of which filed for bankruptcy earlier this year.
Metodiev replied, «Insolvency, bankruptcy is nowhere in Nexo’s reality.»
He added, «We work very hard that we deliver a very strong and sustainable future for our users for many years to come, enriched with a number of additional services and products through integration of technology and disruption of existing services.»
Following that, Trenchev echoed a similar opinion saying the company had «no exposure to the Terra and Luna debacle». He also pointed out that Nexo has not lent to the bankrupt crypto hedge fund Three Arrows Capital.
The Switzerland-based crypto lending platform is instead heading towards expansion into industries like trading as well as the development of wealth and asset management solutions in traditional capital markets, the two co-founders said.
In recent months, Nexo has also positioned itself as a potential acquirer of ailing cryptocurrency companies. In August, Nexo approved a $50 million token buyback program. Nexo had previously completed a $100 million buyback in May.
Yet, Nexo was called out by regulators from eight US states last month for offering interest-earning accounts without registering the investment products as securities. Following this Nexo had to fight against a cease and desist order filed by the regulators from California, Kentucky, Maryland, New York,
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