Fun

Nexo Bitcoin Withdrawals Surge Following Raid of Bulgarian Offices

News Feed - 2023-01-14 02:01:06

Nexo Bitcoin Withdrawals Surge Following Raid of Bulgarian Offices


After the offices of crypto lender Nexo were raided in Bulgaria, the digital currency lending platform experienced a significant amount of withdrawals starting Jan. 12, 2023. An archived snapshot of Nexo’s real-time attestation shows that the company held 133,263 bitcoin on that day. As of Jan. 13, 2023, Nexo’s attestation indicates that the company now holds 124,939 bitcoin, with $157.21 million worth of bitcoin having been withdrawn during the past 24 hours. Customers Withdraw $157 Million Worth of Bitcoin From Nexo’s Platform in 24 Hours


Last year, a number of exchanges experienced withdrawal stress tests, and after Nexo‘s office raid on Thursday, the crypto lender is dealing with similar issues. Reports on Jan. 12, 2023, disclosed that Nexo is under investigation by Bulgaria’s attorney general and roughly 300 investigators from various agencies. The company is accused of violating tax requirements, participating in money laundering, and bypassing financial sanctions associated with the Russian Federation. Nexo’s real-time attestation website.


Nexo has denied any wrongdoing and immediately issued a statement on Twitter to the community that the company adheres to “very stringent anti-money laundering and know-your-customer policies.” Following the incident, the company has seen a flurry of withdrawals according to its real-time attestation website. For example, on Jan. 3, 2023, Nexo held around 134,203 bitcoin, valued at $2.5 billion using current BTC exchange rates. By Jan. 12, 2023, the crypto lender’s BTC stash had decreased to 133,263 bitcoin.


Twenty-four hours later, on Friday, Jan. 13, 2023, Nexo’s BTC stash had decreased by 8,324 BTC to the current level of 124,939 BTC. This means that using current BTC exchange rates, $157.21 million was withdrawn from Nexo’s cache of bitcoin. Nexo’s withdrawals follow a number of other exchanges that have experienced large withdrawals in a short period of time. After the collapse of FTX, users withdrew a significant amount of digital assets from exchanges such as Binance, Kucoin, and Crypto.com.




It is unclear what will happen with the case against Nexo in Bulgaria, but with the rate of withdrawals over the past day, it appears customers are concerned. When speaking with The Block’s reporter Yogita Khatri, Nexo’s co-founder Antoni Trenchev said the withdrawals represented only 2% of the company’s assets under management (AUM). “Nexo can confirm that all systems are up and running and everything is being processed in real-time as always,” Trenchev told Khatri on Friday. “Activity is orders of magnitude smaller than post-Celsius and post-FTX,” the Nexo executive added. Tags in this story Activity, Assets, Attorney General, Bitcoin, Bulgaria, Bulgaria Offices, Bulgaria Raid, concern, Crypto lender, Crypto Lenders, Customers, denial, Exchanges, Executive, Financial Sanctions, Investigation, magnitude, Management, Money Laundering, Nexo, post-Celsius, post-FTX, processing, Raid, real time, real-time attestation, Russian Federation, Sofia Raid, Stress Test, systems, tax violation, withdrawal


What are your thoughts on the recent withdrawals from Nexo and the ongoing investigation in Bulgaria? Share your opinions in the comments below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Disgraced FTX Co-Founder Awaits Trial, Passes Time Playing Video Games and Blogging on His New Substack Newsletter NEWS | 2 hours ago Biden Vows to Veto House Republicans" "Fair Tax Act" Proposing Elimination of IRS NEWS | 9 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: FellowNeko / Shutterstock.com Previous articleBiggest Movers: SHIB Hits 6-Week High, ETC Extends Recent Gains Next articleSEC Charges Genesis and Gemini — Winklevoss Says Regulator’s Lawsuit Is ‘Super Lame’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Iran to Increase Penalties for Unauthorized Cryptocurrency Mining

News Feed

Terra Fiasco Stirs Value Locked in Defi — Lido, Anchor Plummet to Lower Positions
Terra Fiasco Stirs Value Locked in Defi — Lido, Anchor Plummet to Lower Positions Decentralized finance (defi) protocols are having a hard time weathering the storm, as the total
Celsius Files for Bankruptcy — Regulator Says the Crypto Lender Is ‘Deeply Insolvent’
Celsius Files for Bankruptcy — Regulator Says the Crypto Lender Is "Deeply Insolvent" Another crypto lender, Celsius Network, has sought bankruptcy protection in the U.S. “
Study: Samsung Named Most Active Investor in Crypto and Blockchain Startups
Study: Samsung Named Most Active Investor in Crypto and Blockchain Startups Between September 2021 and mid-June 2022, Samsung invested in 13 crypto/blockchain companies thus making
ECB President Christine Lagarde Blames Climate Change for Europe’s Torrid Inflation
ECB President Christine Lagarde Blames Climate Change for Europe’s Torrid Inflation According to the French politician currently serving as the president of the European Central
Arijit Sarkar1 hour agoUK FCA shuts down 26 crypto ATMs following coordinated investigationThe FCA and other law enforcement agencies investigated 36 crypto ATM locations using powers under money laundering regulations.5
Crypto Tax Compliance Startup Taxbit Raises $100 Million, Targets International Expansion
Crypto Tax Compliance Startup Taxbit Raises $100 Million, Targets International Expansion U.S. crypto tax compliance startup Taxbit has raised $100 million in a
Riot subsidiary Whinstone US sues former JV partner over revenue flow
Derek Andersen2 hours agoRiot subsidiary Whinstone US sues former JV partner over revenue flowThe partners at the Texas facility had troubled relations almost from their start in 2020.473 Total viewsListen to article 0:0
Ice Cube’s Big3 Professional Basketball League Sells Team to a DAO for 25 NFTs
Ice Cube"s Big3 Professional Basketball League Sells Team to a DAO for 25 NFTs Decentralized autonomous organizations (DAOs) have been acquiring high ticket items over the last 12
Twitter Files for Payment Business — Elon Musk Says Platform Could Offer Debit Cards, Money Market Accounts
Twitter Files for Payment Business — Elon Musk Says Platform Could Offer Debit Cards, Money Market Accounts Twitter has filed paperwork with the U.S. Financial Crimes Enforcement
Hollywood Has Future in Blockchain, NFTs Says Outgoing Warner Media CEO
Hollywood Has Future in Blockchain, NFTs Says Outgoing Warner Media CEO Jason Kilar, the outgoing CEO of Warner Media, has touted blockchain as a technology that could transform th
VanEck eyes $350 Solana price, Tornado Cash dev to face criminal trial: Finance Redefined
Zoltan Vardai5 hours agoVanEck eyes $350 Solana price, Tornado Cash dev to face criminal trial: Finance RedefinedSolana’s market cap could reach 50% of Ether’s due to its superior transaction throughput, according to
From Banking Giants to Tech Darlings, China Reveals Over 500 Enterprise Blockchain Projects
The Takeaway: More than 500 blockchain projects have been registered with the Chinese government since March. The filings reveal some of the largest Chinese banks and tech companies working with the technology. Several g