This is what Nexo executives said about solvency concerns
After days of speculation over Nexo’s financial health and solvency, the crypto lender’s executives took to YouTube to answer questions from the community during an Ask Me Anything (AMA) session.
The session was hosted by Nexo co-founders and managing partners Antoni Trenchev and Kalin Metodiev. Both of them addressed the concerns raised by users.
The executives denied rumors stemming from regulators and investors surrounding the crypto lender’s solvency, reassuring everyone that the company was solvent.
“Insolvency and bankruptcy are nowhere in Nexo’s reality, and we believe, we hope, we aspire, we work very hard to deliver a very strong and sustainable future for our users,” Metodiev stated.
The executives addressed one matter in particular, the comparison to defunct crypto lenders like Voyager Digital and Celsius Network.
“Finding resemblances with these two names [Celsius and Voyager] or other names in the space is very far from reality and I think this is very easily verifiable” Metodiev clarified.
Metodiev’s argument was furthered by Trenchev, who cited the creditor’s list from the bankruptcy filings of Voyager and Celsius pointing out that Nexo was not on that list.
Trenchev went on to remind the community that unlike the other lenders going through bankruptcy proceedings, Nexo did not have any exposure to Terra or Three Arrows Capital.
Nexo was the subject of simultaneous enforcement action by eight different U.S. state regulatory agencies. Regulators from California, Virginia, Kentucky, and Oklahoma issued cease and desist orders against the lender.
Meanwhile, New York, Washington, Maryland, and South Carolina issued notices leveling similar accusations in dealing a major blow to the lender.
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