High-ranking members of the company quashed speculation about crypto lender Nexo heading for bankruptcy.

In a YouTube ‘Ask-Me-Anything’ video on Tuesday, Nexo co-founders Antoni Trenchev and Kalin Metodiev addressed a series of queries, where one participant asked if its lending platform could be the upcoming Celsius Network Ltd. or Voyager Digital Ltd., both of which filed for bankruptcy earlier this year.

Metodiev replied: “Insolvency, bankruptcy is nowhere in the reality of Nexo.”

He added: “We work very hard to deliver a very strong and sustainable future for our users for many years to come, enriched with a number of additional services and products through the integration of technology and the discontinuation of existing services.”

After that, Trenchev echoed a similar opinion saying that the company was “not exposed to the Terra and Luna debacle”. He also noted that Nexo has not lent to bankrupt crypto hedge fund Three Arrows Capital.

In recent months, Nexo has positioned itself as a potential buyer of ailing crypto companies. In August, Nexo approved a $50 million token buyback program. Nexo had previously completed a $100 million buyback in May.

Instead, the Swiss-based crypto lending platform is heading toward expansion in industries such as trading, as well as developing wealth and asset management solutions in traditional capital markets, the two co-founders said.

Last month, regulators in eight US states called out Nexo for offering interest-bearing accounts without registering the investment products as securities. Following this, Nexo had to fight a cease and desist order filed by regulators in California, Kentucky, Maryland, New York, Oklahoma, South Carolina, Vermont, and Washington.

Nexo performance accounts were marketed and used by retail investors.

In another development last month, Nexo announced the acquisition of a stake in Wyoming-based Summit National Bank, expanding its presence in the US region.

Nexo has acquired a stake in the US federal bank regulated by the Office of the Comptroller of the Currency through the acquisition of a stake in Hulett Bancorp. Hulett Bancorp is a holding company that controls Summit National Bank.

Specific terms of the deal were not disclosed to the public. The company emphasized that the mutually beneficial impact the share acquisition will have on both companies’ customers should be the focus of the deal rather than the size of the deal.

Nexo will announce more plans in the coming months to expand its new customers in the US and expand its addressable market in the country, the company said.

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