Nexo Witnesses Withdrawal Spike Post Raid by Financial Authorities

  • On January 13 Nexo’s Bitcoin holdings were down to 124,939 BTC, a reduction of 8,324 BTC.
  • Co-founder Antoni Trenchev told that the withdrawals amounted to barely 2% of Nexo’s AUM.

Similar to the withdrawal panic that plagued many exchanges last year. Nexo, a cryptocurrency lender, is experiencing difficulties after Thursday’s raid of its headquarters. Nexo is reportedly being investigated by the attorney general of Bulgaria. And another 300 investigators from different authorities, as was reported on January 12, 2023.

Moreover, the firm has been accused of evading taxes, engaging in money laundering, and breaking Russian Federation-related financial sanctions. Nexo has published a statement on Twitter assuring the public that it does not engage in any wrongdoing and that it follows extremely severe anti-money laundering and know-your-customer standards. 

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Furthermore, according to the firm’s real-time attestation website, withdrawals spiked after the event. On January 3, 2023, for instance, Nexo had roughly 134,203 bitcoin. The crypto lender’s BTC holdings were down to 133,263 on January 12, 2023.

On Friday, January 13, 2023, after 24 hours, Nexo’s Bitcoin holdings were down to 124,939 BTC, a reduction of 8,324 BTC. This trend of rapid withdrawals from Nexo is similar to that seen at other exchanges recently. Users withdrew a large quantity of digital assets from exchanges including Binance, Kucoin, and after the demise of FTX.

It seems consumers are worried about the outcome of the lawsuit against Nexo in Bulgaria, judging by the high volume of withdrawals over the last day. Co-founder Antoni Trenchev told The Block’s Yogita Khatri that the withdrawals amounted to barely two percent of Nexo’s AUM. Trenchev assured Khatri on Friday that “Nexo can confirm that all systems are up and running and everything is being processed in real-time as always.”

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