by Barely a few days following the predicted 50% fall in Nexo’s price as a result of regulatory problems and the consequent concern from investors, a cryptocurrency wallet with the label “NEXO 0x8fd” has withdrawn 7,758.8 WBTC worth about $153 million from MakerDAO. The entire crypto community is linking the latest withdrawal with the rumored insolvency around Nexo because of the wallet’s tag.
Nexo Under Regulatory Lenses
Regulators from 8 states in the US filed an order against Nexo on the 26th of September for the platform to cease its operations. The states allege that the platform is offering securities to users and investors without being registered. Furthermore, the regulators in Kentucky accused the firm of being insolvent due to liabilities that are beyond its assets.
After the suit had been filed, a blockchain investigator, Peckshiled, on the 30th of September, alerted the crypto community to the movement of 7,758.8 WBTC out of MakerDAO. The crypto community, for good reasons, connected the fund movement with Nexo because the wallet name had Nexo attached to it.
The total value locked on the MakerDAO has consequently fallen by 43.3% in the course of the past year. The total value is now $7.11 billion.
Still Expanding Business
Details of the transaction reveal that some DAI tokens of about $50.1 million worth were moved from Nexo: 0x8fd to an address that is null, indicators suggest it might be a burn address, through the DSProxy. Note that the transaction hash equally confirms that $153.2 million worth of WBTC was transferred.
There is still more investigation going on over the matter but the general crypto community thinks there might be foul play. Nexo was yet to respond to press inquiries as of the time of this report.
In spite of the ongoing legal battle, Nexo goes ahead with its business and expands it. Recently on the 27th of September, Nexo bought a share of Hullet Bancorp, which is a company that owns the Summit National Bank.
The purchase opens the door for Nexo and its clients to have accounts with the bank. Furthermore, Nexo’s clients, both retail and industrial, based outside the United States will have access to loans backed by assets, card products, as well as custodian and escrow solutions which are offered through Summit bank.
