Because the saga of FTX’s utter collapse continues, Nexo tweeted that its publicity is zero following the current withdrawal of its whole steadiness held with the troubled alternate.
.@Nexo has $0 internet publicity to FTX/Alameda.
As a conservative establishment with stringent threat controls @Nexo has safeguarded *all* funds by withdrawing its whole balances from the alternate over the previous few days, as evidenced by on-chain information:https://t.co/py8fzBDKbP
1/— Nexo (@Nexo) November 8, 2022
On November 8, as FTX conceded insolvency, the problem of crypto contagion re-reared its head. As demonstrated by the collapse of the Terra ecosystem in June, the cryptocurrency business is carefully interlinked.
Binance jumped in to save FTX from the liquidity crunch by saying plans to amass it outright, however FTX’s state of affairs was extra dire because the alternate large pulled out of the deal barely a day into due diligence procedures, noting a mishandling of buyer funds on the alternate in addition to impending US regulatory investigations and stating that “the problems are past our management or skill to assist.”
Hypothesis continues to mount over which CeFi lending platform is subsequent to succumb as Celsius, Voyager, and others did following the UST de-peg.
Nexo seeks to reassure its customers
Earlier on Nov. 9, Nexo co-founder and Managing Accomplice Antoni Trenchev reiterated the above tweet, saying his firm now has no publicity to FTX. He additionally added a “small Alamdea mortgage” was liquidated.
Whereas @Nexo has $0 publicity to FTX/Alameda, as we’ve withdrawn all balances and liquidated the collateral for the small Alameda mortgage forward of time, our sympathies exit to all immediately or not directly affected by the current occasions.https://t.co/OGov0Gjql9
1/— Antoni Trenchev (@AntoniNexo) November 9, 2022
Trenchev additionally took the chance to say Nexo’s belongings exceed its buyer liabilities per real-time audit offered by Armanino LLP, and that its native NEXO token makes up lower than 7% of its belongings.
Greater than a 12 months in the past, @Nexo & @ArmaninoLLP pioneered a real-time audit of Nexo’s custodial belongings, exhibiting that our belongings (of which $NEXO tokens are <7%) exceed buyer liabilities.
We’ve challenged extra corporations to undergo а related course of https://t.co/V3uZExIuQV
2/— Antoni Trenchev (@AntoniNexo) November 9, 2022
Nonetheless, given the frequency of situations the place customers have been assured every part is ok, just for it to not be, such assurances have understandably turn out to be considered with skepticism.
Soiled Bubble Media posted a thread difficult Nexo’s claims. It questioned the efficacy of Armanino’s audit procedures, saying the agency doesn’t present an opinion, solely that it has considered information by which belongings exceed liabilities.
The thread additionally talked about the shortage of transparency and element on “particular holdings, the quantity in every class, the sorts of belongings owed.” That means readers lack ample info to type an opinion on steadiness sheet well being.
That is particularly the case with loans, with documentation omitting an evaluation of the chance of non-repayment.
“Armanino merely appears at Nexo’s mortgage agreements and says, “yup, they’ve an settlement for X to pay them again!” There is no such thing as a evaluation of the LIKELIHOOD these loans are repaid.“
The ultimate level made considerations the assertion, “belongings exceed liabilities.” Soiled Bubble Media says there isn’t any indication of by how a lot.
CryptoSlate reached out to Nexo for remark, however no reply was acquired on the time of press.
Crypto.com suspends USDC & USDT withdrawals on Solana
A tweet from Lars Hoffmann, Analysis Director on the Block, confirmed a display screen seize from Crypto.com informing of the suspension of USDC and USDT withdrawals and deposits on the Solana blockchain.
Anybody else simply bought this? pic.twitter.com/LmX5LtXV4x
— Lars (@lars0x) November 9, 2022
Nonetheless, it seems to be remoted to the Solana blockchain because the discover acknowledged that USDC and USDT withdrawals can be found by way of different chains, corresponding to ETH.
At this stage, it’s not recognized whether or not it is a non permanent community drawback or if deeper, extra enduring components are at play.
