Nexo dodges $219M bullet just days before FTX’s solvency crisis

In response to a Nov. 8 tweet, crypto lender Nexo at the moment has web zero publicity to the continuing disaster embroiling cryptocurrency change FTX and crypto buying and selling agency Alameda Analysis. Nexo additionally defined that it withdrew its total stability of funds from FTX inside “the previous few days.”

Alex Svanevik, CEO of blockchain analytics platform Nansen, confirmed the story, offering knowledge displaying that Nexo withdrew over $219 million from FTX between Nov. 1 and Nov. 8. This additionally ranks Nexo as the highest entity for funds outflow previously week.

Related articles

Binance upgrades Proof of Reserves verification to include zk-SNARKs

2023-03-15

The history of mining: From the stone age to the digital era

2023-02-10

The agency seems to have dodged a serious bullet, as on Nov. 8, FTX introduced that it will halt all non-fiat shopper withdrawals. Persevering with with its evaluation of the state of affairs, Nexo mentioned that it had a small mortgage to Alameda Analysis representing lower than 0.5% of its belongings. The mortgage was totally collateralized by digital belongings, which Nexo mentioned have been bought on Nov. 6. In response to the agency, the commerce resulted in “100% principal restoration and $0 losses for the corporate.”

.@Nexo has $0 web publicity to FTX/Alameda.
As a conservative establishment with stringent threat controls @Nexo has safeguarded *all* funds by withdrawing its total balances from the change over the previous few days, as evidenced by on-chain knowledge:https://t.co/py8fzBDKbP
1/

— Nexo (@Nexo) November 8, 2022

Nexo has to date sidestepped main industrywide threat occasions this 12 months, together with the collapse of Terra, hedge fund Three Arrows Capital and crypto lender Celsius. In response to a real-time audit of the agency’s custodied belongings, Nexo at the moment has greater than $3.4 billion in shopper liabilities, with a collateralization ratio of greater than 100%, making them totally backed by Nexo’s belongings. The numbers are attested by United States accounting agency Armanino LLP, which is an auditor licensed by the Public Firm Accounting Oversight Board.