Nexo experiences massive withdrawals, users leave platform

Following the troubling news of the open investigation into Nexo in Bulgaria and yesterday’s raid on the lender’s offices, blockchain analysts have witnessed a “flood of withdrawals” from the platform. Still, Nexo says it’s all business as usual.

Related: Nexo is under money laundering investigation in Bulgaria

Crypto intelligence team Arkham spotted an abnormal activity on Nexo, pointing out the massive withdrawals:

Yet, when Decrypt asked Nexo, a Nexo representative said those withdrawals were nothing out of the ordinary:

We do not register abnormal activity in regards to withdrawals. It’s all business as usual.

Another on-chain data analyst, Cielo Finance, joined the Arkham team, citing they also have spotted a “flood of withdrawals”:

We noticed a flood of customer stablecoin withdrawals as well as the Nexo treasury wallet moving around WETH (Wrapped Ethereum), BNB (Binance Coin) and stables on Polygon and BNB chain.

As Nexo pointed out yesterday, in these turbulent times caused by the collapse of the crypto exchange FTX, regulators took a “flick first, ask questions later” approach when opening an investigation into the crypto lender and then raided its Bulgarian offices.

Add to this troubling news Nexo’s decision to gradually withdraw from the U.S. after hitting a wall with the SEC and the industry’s general fear of centralized crypto companies collapsing one by one like dominoes in this cycle, and the recent massive withdrawals from the Nexo platform are easily explained.

Related: Nexo hits a wall with U.S. regulators

At the time of writing, the Nexo native token, NEXO, has been trading at $0.7156, -2.07% in the last 24 hours, according to data from CoinMarketCap.

Recently, something similar happened with the crypto exchange Huobi, which experienced withdrawals after the FUD spread about Huobi’s possible insolvency.

Related: Huobi to lay off 20% of employees, Justin Sun denies rumors

A similar situation occurred with Binance when the exchange temporarily stopped USDC withdrawals, and panicked users started leaving the platform.

Related: Binance addresses all recent FUD in blog post