Nexo Facing Outflows as Bulgarian Gov’t Investigates Financial Crimes

• On-chain data shows that addresses related to crypto lender Nexo are recording outflows following news of financial crimes investigations by the Bulgarian government.
• Crypto intelligence platform Arkham Intelligence dashboard showed that the crypto lender had seen outflows of roughly $9 million since the news broke.
• Nexo’s real-time attestation by Armanino showed that its customer’s liabilities were $2.42 billion (133,263 Bitcoin) as of Jan. 12.

Crypto lender Nexo has been facing a wave of withdrawal activity after news of financial crimes investigations by the Bulgarian government surfaced. On-chain data shows that addresses related to Nexo have seen outflows of nearly $9 million, with the majority of the withdrawals coming from retail investors moving funds to centralized exchanges such as Binance, Kraken, and others.

Crypto intelligence platform Arkham Intelligence has been tracking these outflows, and has found that the majority of these withdrawals have been from a single address, 0xFfe. This address represents Nexo’s own holdings and the outflows are likely the result of customers withdrawing their funds from the platform due to recent events.

In addition to the outflows, a real-time attestation by Armanino has revealed that Nexo’s customer liabilities have grown to $2.42 billion (133,263 Bitcoin) as of January 12th. This figure was significantly lower just a week prior, indicating that customers are rapidly withdrawing their funds in response to the news.

Several crypto community members have expressed concern over Nexo’s future and have speculated that the firm could be the next victim of a crypto contagion that has taken several other companies by storm. Adam Cochran, a partner at MetaCartel Ventures DAO, has noted that Nexo had previously argued with him that its operations were „super clean and audited“. Ram Ahluwalia, the CEO of Lumida Wealth, has also called out Nexo’s practices in the past.

It remains to be seen how this situation will play out, as Nexo has yet to officially comment on the Bulgarian government’s investigations. Whatever the outcome, this situation serves as a cautionary tale to crypto users to be aware of the risks associated with investing in crypto-related firms, and to always make sure to do their own research.