Did Nexo founders steal money from charity? Crypto lending platform threatens legal action

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Nexo has shared a blog on their website threatening legal action against an anonymous Twitter user. The goal is to silence the anonymous person. The Twitter user accuses the founders of Nexo of embezzling money for their own purposes from a children’s medical aid charity.

Nexo is a platform you can lend crypto to at interest. Read our full review here

Money stolen from charity

The Twitter account, which labels itself as “Otter” in the third person, published a series of tweets yesterday claiming that the founders of Nexo stole money from a charity. The tweets have received thousands of likes and retweets.

What are the allegations of otter?

The following comes from otter himself and has not been fact-checked by us. According to otter, Nexo was co-founded by three Bulgarians.

  1. Konsta Kantchev
  2. Antoni Trenchev
  3. Georgi Shulev

Legally, the third, Georgi Shulev has been removed from the register. He is the son of former Bulgarian Deputy Prime Minister Lydia Shuleva.

Otter says that in 2020 Bulgarian reporters discovered a huge scandal about HelpKarma, this is a charity that focuses on children’s health.

According to bird.bg (Bureau for Investigative Reporting & Data), the donations were used to purchase real estate, luxury personal trips and so on.

What they further discovered was that Kalin Kanchev, the father of the number 1 of the 3 was installed on the board of directors of HelpKarma in March 2018.

Coincidentally, in March 2018 was Nexo’s first ICO.

Finance minister spoke out

Otter says HelpKarma raised millions of dollars through donations and handed out huge commissions to:

  • the board (father of 1)
  • founder (nephew of 1)
  • salaries for colleagues with a monthly salary of 50 thousand dollars (average in Bulgaria is one thousand dollars).

It was such a big scandal that the Deputy Minister of Finance of Bulgaria got involved. He calculated that 12.2% of the donations were paid out as “salaries,” when they should only be 5%. By the way, there were only 17 people on the payroll.

Yet, Konsta Kanchev (number 1 of 3) continued to embezzle money according to otter, and he built a palace with this. Otter says the money came from the donations of more than 130,000 Bulgarians who thought this would help children medically.

Money from HelpKarma to loan company

Another investigative news center in Bulgaria called Lupa.bg, discovered that while HelpKarma’s donations were pouring in, Credissimo & CredissimoSuper were getting a lot of capital in.

According to otter, Credissimo has these same shareholders as HelpKarma and Nexo. Credissimo is a Bulgarian credit company that offers payday loans at competitive rates.

For what it’s worth, Credissimo is mentioned 32 times in the whitepaper From the ICO of Nexo.

Stopping and debunking

After otter shared these allegations on Twitter, Nexo published two more messages on its website that same day: one of these was a letter to the effect that the Twitter account should stop posting (because otherwise…), the other post attempts to address otter’s allegations of refute.

The debunking blog reads:

“Several anonymous Twitter accounts are using lies and distortion in yet another smear campaign against Nexo, profiting from short positions in an ailing market. The entire thread of the anonymous group of shortsellers is based on superficial lies and far-fetched connections from 2020.”

Otter says that in addition to these two pages, there was also $25 thousand bid on his Twitter account.

Nexo, which offers interest rates of 18% on cryptocurrency, claims to serve more than four million customers. It has more than $12 billion under management, according to the website.

We will continue to follow this soap opera as this will undoubtedly have a tail end. When the euphoria of the bull market wanes, it is not only time to build, but the scandals come to the fore. In this respect, the following applies not only to investing, but also to news: Never waste a good bear market.

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