50% of MakerDAO’s WBTC Pulled Out by Nexo-linked Address

A crypto address tagged NEXO 0x8fd has pulled out 7758.8 Wrapped Bitcoin (wBTC) from the decentralized finance (DeFi) platform MakerDAO.

The hijacked WBTC worth about $153 million at the time of this writing, is exactly half of the amount of wBTC that MakerDAO held before the protocol was breach. This news comes only a few days after crypto financial analysts predicted a 50% fall in the NEXO token owing to regulatory pressures and concerns from investors.

Blockchain whistleblower Peckshield alerted the crypto community of the huge withdrawal on September 30th. Meanwhile, the withdrawal was linked to Nexo’s insolvency problems due to the NEXO 0x8fd name tag on the wallet address.

According to Santiment, a blockchain analytic firm that has also followed the matter closely believes that more is to come from Nexo after this huge withdrawal. The analytic firm stated,

“Nexo has made a big move, and likely plans to make more after pulling nearly 50% of the WBTC held in MakerDao. This has left $120M in WBTC remaining locked in CDPs (collateralized debt position). We will be monitoring for signs as to what Nexo plans to do with their free assets.”

Nexo Violates Security Laws

A few days before this move was made, Nexo received a cease and desist order from regulators in California, New York, Washington, Kentucky, Vermont, South Carolina, Maryland, and Oklahoma. The crypto firm was called out on the account of security law violations with its Earn Interest Product (EIP). Nexo offered unregistered securities to investors without warning.

Previously, the United States Securities and Exchange Commission had clarified its stance on the crypto lending platform’s interest-bearing accounts.

In response, Nexo announced that it was already having discussions with the regulators concerning the situation. As a result, it has stopped accommodating United States accounts and balances for EIP. 

“We have been working with US federal and state regulators and understand their urge, given the current market turmoil and bankruptcies of companies offering similar products, to fulfill their mandates of investor protection by examining past behaviour of providers of earn interest products,” Nexo responded.

There are some speculations that Nexo may suspend trading from its platform and eventually freeze accounts in comparison to bankrupt Celsius Network.