The digital currency lending platform has experienced massive withdrawals since January 12, 2023, after the offices of crypto lender Nexo were raided in Bulgaria. As of January 13, 2023, the company currently holds 124,939 Bitcoins, according to Nexo’s proof, and he has withdrawn $157.21 million worth of Bitcoins in the last 24 hours.
Customers withdrew $157 million worth of Bitcoin from Nexo’s platform in 24 hours
After many exchanges experienced withdrawal stress tests last year and raided Nexo’s offices on Thursday, cryptocurrency lenders are dealing with similar issues. A January 12, 2023 report revealed that Nexo is being investigated by the Bulgarian Attorney General and about 300 investigators from various agencies. The company has been accused of violating tax requirements, participating in money laundering and evading financial sanctions related to the Russian Federation.
Nexo denied any wrongdoing and immediately issued a statement to the community on Twitter that the company adheres to a “very strict anti-money laundering and know your customer policy.” After the incident, the company saw a flurry of withdrawals, according to its real-time verification website. For example, on January 3, 2023, Nexo held approximately 134,203 bitcoins worth $2.5 billion at his current BTC exchange rate. By January 12, 2023, the crypto lender’s BTC stash had dwindled to his 133,263 Bitcoins.
Twenty-four hours later, on Friday, January 13, 2023, Nexo’s BTC stash dropped by 8,324 BTC to its current level of 124,939 BTC. This means that, using his current BTC exchange rate, $157.21 million has been withdrawn from Nexo’s Bitcoin cash. Nexo withdrawals follow many other exchanges that experienced large withdrawals in a short period of time. After the collapse of FTX, a user withdrew a large amount of digital assets from his Binance, Kucoin, Crypto.com and other exchanges.
It’s unclear what will happen with Bulgaria’s lawsuit against Nexo, but customers seem concerned given past one-day payout rates.When talking to a block reporter Yogita Katorico-founder of Nexo Anthony Trenchev Withdrawals accounted for only 2% of the company’s assets under management (AUM), he said. “Nexo can confirm that all systems are up and everything is being processed in real time as usual,” Trenchev told Khatri on Friday. “Activity is orders of magnitude less than after Celsius and after FTX,” added the Nexo executive.
What are your thoughts on the recent exit from Nexo and the ongoing investigation in Bulgaria? Share your thoughts in the comments below.
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