1 year ago
As the saga of FTX’s utter illness continues, Nexo tweeted that its vulnerability is zero pursuing the caller withdrawal of its full equilibrium held with the troubled exchange.
.@Nexo has $0 nett vulnerability to FTX/Alameda.
As a blimpish instauration with stringent hazard controls @Nexo has safeguarded *all* funds by withdrawing its full balances from the speech implicit the past fewer days, arsenic evidenced by on-chain data:https://t.co/py8fzBDKbP
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— Nexo (@Nexo) November 8, 2022
On November 8, arsenic FTX conceded insolvency, the contented of crypto contagion re-reared its head. As demonstrated by the illness of the Terra ecosystem successful June, the cryptocurrency manufacture is intimately interlinked.
Binance jumped successful to save FTX from the liquidity crunch by announcing plans to get it outright, but FTX’s concern was much dire arsenic the speech elephantine pulled retired of the deal hardly a time into owed diligence procedures, noting a mishandling of lawsuit funds astatine the speech arsenic good arsenic impending US regulatory investigations and stating that “the issues are beyond our power oregon quality to help.”
Speculation continues to equine implicit which CeFi lending level is adjacent to succumb arsenic Celsius, Voyager, and others did pursuing the UST de-peg.
Nexo seeks to reassure its users
Earlier connected Nov. 9, Nexo co-founder and Managing Partner Antoni Trenchev reiterated the supra tweet, saying his institution present has nary vulnerability to FTX. He besides added a “small Alamdea loan” was liquidated.
While @Nexo has $0 vulnerability to FTX/Alameda, arsenic we person withdrawn each balances and liquidated the collateral for the tiny Alameda indebtedness up of time, our sympathies spell retired to each straight oregon indirectly affected by the caller events.https://t.co/OGov0Gjql9
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— Antoni Trenchev (@AntoniNexo) November 9, 2022
Trenchev besides took the accidental to accidental Nexo’s assets transcend its lawsuit liabilities per real-time audit provided by Armanino LLP, and that its autochthonal NEXO token makes up little than 7% of its assets.
More than a twelvemonth ago, @Nexo & @ArmaninoLLP pioneered a real-time audit of Nexo’s custodial assets, showing that our assets (of which $NEXO tokens are <7%) transcend lawsuit liabilities.
We person challenged much companies to spell done а akin process https://t.co/V3uZExIuQV
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— Antoni Trenchev (@AntoniNexo) November 9, 2022
However, fixed the frequence of instances wherever users person been assured everything is fine, lone for it not to be, specified assurances person understandably go viewed with skepticism.
Dirty Bubble Media posted a thread challenging Nexo’s claims. It questioned the efficacy of Armanino’s audit procedures, saying the steadfast does not supply an opinion, lone that it has viewed records successful which assets transcend liabilities.
The thread besides mentioned the deficiency of transparency and item connected “specific holdings, the magnitude successful each category, the types of assets owed.” Meaning readers deficiency capable accusation to signifier an sentiment connected equilibrium expanse health.
This is particularly the lawsuit with loans, with documentation omitting an appraisal of the hazard of non-repayment.
“Armanino simply looks astatine Nexo’s indebtedness agreements and says, “yup, they person an statement for X to wage them back!” There is nary appraisal of the LIKELIHOOD these loans are repaid.“
The last constituent made concerns the statement, “assets transcend liabilities.” Dirty Bubble Media says determination is nary denotation of by however much.
CryptoSlate reached retired to Nexo for comment, but nary reply was received astatine the clip of press.
Crypto.com suspends USDC & USDT withdrawals connected Solana
A tweet from Lars Hoffmann, Research Director astatine the Block, showed a surface drawback from Crypto.com informing of the suspension of USDC and USDT withdrawals and deposits connected the Solana blockchain.
Anyone other conscionable got this? pic.twitter.com/LmX5LtXV4x
— Lars (@lars0x) November 9, 2022
However, it appears to beryllium isolated to the Solana blockchain arsenic the announcement stated that USDC and USDT withdrawals are disposable via different chains, specified arsenic ETH.
At this stage, it is not known whether this is simply a impermanent web occupation oregon if deeper, much enduring factors are astatine play.
The station Fears turn implicit caller question of CeFi bankruptcies: Nexo distances itself from FTX appeared archetypal connected CryptoSlate.
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