Nexo denies accusations of misappropriating donations for a children's fund – Bits Media

Lending platform Nexo, in response to a Twitter user accusing him of embezzling funds for charity, warned, what can bring the slanderer to justice.

Otteroooo posted a series of posts, where he claimed, that the founder of Nexo and its members families siphoned funds from HelpKarma, a charitable organization, protecting children's health in Bulgaria. Nexo officials allegedly used donations to purchase real estate and fund “lavish personal travel.”. Otteroooo clarified, that Nexo has raised assets from Arrington XRP Capital, which previously invested in Terra Luna, Chai payment app and DeFi protocol based on Terra Anchor.

Otteroooo suggested, that Arrington XRP Capital founder Michael Arringtoa may have profited from donations, intended for sick children, and advise Nexo, Credissimo or HelpKarma in this shady operation". Most of the accusations are centered around Konsta Kanchev, which the, according to Twitter user, is the founder of HelpKarma and Nexo companies. However, in fact, Kosta Kanchev is the co-founder of Nexo, and the founder of the charitable organization is Konstantin Krastev.

All this is just a “set of ridiculous accusations”, Nexo stated. Otteroooo found himself accused of smear campaign against Nexo and profiting from short positions in the troubled market. The company insists, that a Twitter user took advantage of Nexo's predicament, when the crypto lending sector was hit hard by the market downturn. The company warned, that it will use any legal means against "defamatory statements and false statements", distributed via Twitter.

The crypto lender said, that Otteroooo deliberately combined the two names as an excuse to check facts. Nexo and Bulgarian non-profit charity organization, accused of wrongdoing, do not have and have never had common operations, common beneficial owners or common management, Nexo stated.

In March, the founder of the Tron project denied accusations of illegal activities and said, that he is ready to prosecute the author of an exposé publication in The Verge for libel.