Nexo dodges $219M bullet just days before FTX’s solvency crisis
In keeping with a Nov. 8 tweet, crypto lender Nexo presently has web zero publicity to the continued disaster embroiling cryptocurrency trade FTX and crypto buying and selling agency Alameda Analysis. Nexo additionally defined that it withdrew its whole stability of funds from FTX inside “the previous few days.”
Alex Svanevik, CEO of blockchain analytics platform Nansen, confirmed the story, offering knowledge exhibiting 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 up to now week.
The agency seems to have dodged a serious bullet, as on Nov. 8, FTX introduced that it could halt all non-fiat client 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 absolutely collateralized by digital belongings, which Nexo mentioned have been offered on Nov. 6. In keeping with 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 danger controls @Nexo has safeguarded *all* funds by withdrawing its whole balances from the trade over the previous few days, as evidenced by on-chain knowledge:https://t.co/py8fzBDKbP
1/— Nexo (@Nexo) November 8, 2022
Nexo has so far sidestepped main industrywide danger occasions this 12 months, together with the collapse of Terra, hedge fund Three Arrows Capital and crypto lender Celsius. In keeping with a real-time audit of the agency’s custodied belongings, Nexo presently has greater than $3.4 billion in client liabilities, with a collateralization ratio of greater than 100%, making them absolutely 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.
