Nexo Sends Cease-and-Desist Letter to Anonymous Twitter Account Accusing It of Embezzlement

The crypto lender responds to claims that its co-founder stole money from a charity.

AccessTimeIconJun 27, 2022 at 6:37 a.m. UTC
Updated Jun 27, 2022 at 4:01 p.m. UTC

An individual or group using the Twitter handle “@otteroooo” is the target of Nexo’s legal department, after the account holder tweeted allegations that Nexo’s co-founders had siphoned funds from a charity called HelpKarma.

  • In a tweet thread, otteroooo alleged that Kosta Kantchev, a co-founder of Nexo, siphoned funds as an executive from charity crowdfunding platform HelpKarma to build “a palace the size of a high school.”
  • But as Nexo pointed out in a rebuttal, there’s an issue of confused identity: The founder of HelpKarma is Constantine Krastev, not Kosta Kantchev, who shares little physical resemblance to Krastev.
  • Otteroooo’s maintains that he, she or they wasn’t personally served a cease-and-desist notice by Nexo.
  • The individual or people on Twitter also claim that a PR representative of Nexo operating via an anonymous account offered to purchase otteroooo’s Twitter profile, provided that otteroooo would feed “dirt” on Nexo competitors back to headquarters.
  • A spokesperson for Nexo told CoinDesk that the individual who corresponded with otteroooo wasn't affiliated with Nexo. Rather, the spokesman said he contacted the Nexo team with information regarding otteroooo’s desire to sell the account.
  • The Nexo spokesperson said the individual who contacted otteroooo did so in order to help stop the spread of FUD (fear, uncertainty and doubt) that “deals collateral damage to the entire crypto market.”
  • Last week, Nexo announced that it had hired Citigroup to advise it on deals to acquire other crypto lenders.

UPDATE (June 27, 07:20 UTC): Updates fifth and sixth bullet points with comment from Nexo.


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