Nexo Records $9 Million Outflows Amid Bulgarian Financial Crimes Investigation

• On-chain data shows that Nexo-linked addresses have recorded outflows of nearly $9 million following news of financial crimes investigations by the Bulgarian government.
• Nexo’s real-time attestation by Armanino showed that its customer’s liabilities were $2.42 billion (133,263 Bitcoin) as of Jan. 12.
• Several crypto community members believe that Nexo could be the next victim of a crypto contagion that has taken several other companies by storm.

Crypto intelligence platform Arkham Intelligence recently reported that addresses related to crypto lender Nexo were recording outflows of roughly $9 million following news of financial crimes investigations by the Bulgarian government. A breakdown of the transactions showed that Nexo’s address, 0xFfe, saw the majority of the withdrawals, which were populated by transactions from retail investors who majorly deposited to centralized exchanges like Binance, Kraken, etc.

Nexo’s real-time attestation by Armanino showed that its customer’s liabilities were $2.42 billion (133,263 Bitcoin) as of Jan. 12. This has led to a sense of uncertainty in the crypto community, with some believing that Nexo could be the next victim of a crypto contagion that has taken several other companies by storm. A partner at MetaCartel Ventures DAO, Adam Cochran, said Nexo would be „the last of the shady centralized stakers (to) fall.“ He added that the firm had argued with him that its operations „were super clean and audited.“ Ram Ahluwalia, the CEO of Lumida Wealth, also commented on the situation, saying that he had called out „Nexo’s nonsense back in June and on Laura Shin’s podcast.“

This news has also caused a stir in the DeFi community, with some speculating that Nexo’s outflows could be a sign of a larger trend in the DeFi market. While it is too early to tell whether this is the case, the news has certainly caused some unease in the DeFi space. However, some have argued that the outflows may simply be the result of traders taking profits from their positions, rather than a sign of a larger underlying problem.

In the meantime, Nexo is continuing to operate as usual, and has stated that it is cooperating with the Bulgarian authorities in their investigation. It remains to be seen what the outcome of this investigation will be, and how it will affect the future of the crypto lender.