Just days after market analysts predicted a 50% drop in NEXO price amid regulatory pressures and investor concerns, a crypto wallet address dubbed NEXO 0x8fd pulled 7,758.8 Wrapped Bitcoin (WBTC) – roughly worth of $153 million – from MakerDAO.
On Sept. 26, eight-state regulators filed a cease-and-desist order against Nexo, alleging it offered investors unregistered securities without warning. Additionally, Kentucky regulators charged Nexo with bankruptcy because liabilities exceeded assets when Nexo was foreclosed.
Following this, on September 30, blockchain investigator Peckshield reported the transfer of 7,758.8 WBTC from MakerDAO. One of the main reasons why the crypto community has chosen to link the withdrawal of the funds to the Nexo bankruptcy rumors is the name of the wallet – Nexo: 0x8fd.
Overview of MakerDAO details. Source: Peckshield
As shown above, MakerDAO’s Total Value (TVL) has suffered a 43.3% decline over the past year, currently standing at $7.11 billion.
Transaction details show the transfer of $50.1 million worth of DAI tokens from Nexo: 0x8fd to a null address (possibly a burn address) via DSProxy. As highlighted in the screenshot above, the transaction hash also confirms the transfer of $153.2 million in WBTC.
I wish I had seen Celsius moving funds before I froze my account… think for yourself what that means https://t.co/JuQ2fXJIuS
— cryptochicca.eth (@CryptoChicca) September 30, 2022
While the crypto community suspects wrongdoing, further investigations into the matter are ongoing.
Nexo has not yet responded to Cointelegraph’s request for comment.
Related: Nexo “surprised” by action by state regulators, says co-founder
Despite the ongoing FUD, Nexo continues to grow its business. Most recently, on September 27, Nexo acquired a stake in Hulett Bancorp, a holding company that owns a state-chartered Summit National Bank.
The acquisition allows Nexo and its customers to open bank accounts with Summit National Bank. In addition, Nexo retail and institutional clients based outside of the United States will have access to asset-back loans, card products, and escrow and custody solutions offered through Summit.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.