Just days after market analysts predicted a 50% drop in the price of NEXO due to regulatory pressure and investor concerns, a crypto wallet address called NEXO 0x8fd 7,758.8 Encapsulated Bitcoin (wBTC) worth around $153 million has been withdrawn from MakerDAO.
On September 26, regulators in eight US states filed a cease-and-desist order against Nexo for allegedly offering unregistered securities to investors without prior notice. In addition, Kentucky regulators charged Nexo with bankruptcy due to liabilities exceeding assets following Nexo’s incapacity.
Then, on September 30, blockchain researcher Packshield alerted to a transfer of 7,758.8 wBTC from MakerDAO. One of the main reasons why the crypto community decided to link the withdrawal of funds to the Nexo bankruptcy rumors is the name of the wallet – Nexo: 0x8fd.
Overview of information about MakerDAO. Source: Pickshield
As shown above, the total closed value (TVL) on MakerDAO has fallen 43.3% in the past year and is currently at $7.11 billion.
Overview of transaction details. Source: Pickshield
The details of the transaction show that $50.1 million worth of Nexo:0x8fd Dai (DAI) tokens were transferred to an empty address (probably a duplicate address) via DSProxy. As shown in the screenshot above, the transaction hash also confirms the transfer of $153.2 million to wBTC.
While the crypto community suspects wrongdoing, a spokesperson for Nexo told Cointelegraph that the funds are still in Nexo’s publicly flagged wallet, adding the following:
“Yesterday’s ordinary transaction represents repayment of the loan in line with the latest market dynamics and in line with the company’s standard treasury management.”
Cointelegraph was also informed that the transaction was due to Nexo’s operational needs at the time. “As a result, and again due to the current market context, we expect Maker’s leverage to continue to fluctuate based on market volatility,” a Nexo spokesperson concluded.
Etherscan data shows that Nexo also transferred $530 million to MakerDao and opened three loans on the same day, further confirming that the transactions in question were made to cover Nexo’s working capital needs.
RELATED: Nexo ‘surprised’ by government action, says co-founder
Despite the ongoing R&D, Nexo continues to expand its business. Recently, on September 27, Nexo acquired a stake in Hulett Bancorp, the holding company that owns the federally accredited Summit National Bank.
The acquisition allows Nexo and its customers to open bank accounts with Summit National Bank. In addition, Nexo individual and institutional customers residing outside the US will have access to recovery loans, card products and escrow and custody solutions offered through Summit.