Nexo executives deny rumors around insolvency

Following the demise of Celsius Network, Voyager Digital, and Vauld, there have been numerous reports of stress on lending systems as a whole. The most recent target is Nexo, which has $4 billion in assets under management (AUM). The company’s co-founders Kalin Metodiev and Antoni Trenchev officially denied the rumors on Tuesday and announced that they are preparing to expand into trading and wealth management.

In a Tuesday YouTube Q&A, the co-founders of Nexo denied any reality to the insolvency reports. According to media reports, Trenchev emphasized that the company had no exposure to the Terra and LUNA coins or to Three Arrows Capital.

Nexo is not suffering from any insolvency issues

An anonymous viewer questioned if Nexo might succeed Celsius Network or Voyager Digital. Following the market collapse earlier this year, both of these well-known lending platforms declared bankruptcy. Metodiev stated:

“Insolvency and bankruptcy are nowhere in Nexo’s reality…We work very hard … we deliver a very strong and sustainable future for our users for many years to come, enriched with a number of additional services and products through integration of technology and disruption of existing services.”

The creators of Nexo also disclosed their plans to use wealth and asset management services to enter the traditional capital markets and the cryptocurrency trading space. Nexo previously stated its interest in acquiring the eligible assets of Celsius and the troubled DeFi platform Vauld, based in Singapore, which stopped accepting withdrawals in July.

Late last month, federally chartered bank Hulett Bancorp and its affiliate Summit National Bank were acquired by Nexo. In addition to increasing the company’s financial product offerings in the US crypto market, it is intended to assist the company to solidify its position.

Nexo was warned by eight US state authorities last month for marketing interest-earning accounts without the necessary approvals. Orders to cease and desist were filed in Vermont, Kentucky, California, Oklahoma, New York, Maryland, South Carolina, and Washington.