There has been a panic in the digital space amid rumors that Nexo is insolvent due to the abrupt withdrawal of Wrapped Bitcoin (WBTC) from MakerDAO with a Address labeled as Nexus Ox8fd.

This comes just a few days after market analysts predicted a 50% drop in the price of Nexo.

According to reports Obtained from sources, approximately $151 million worth of MakerDAO WBTC was withdrawn from the Nexo wallet on Friday.

While many users believe that the sudden withdrawal is a fraudulent move by the company, a Nexo spokesperson has highlighted that the withdrawn funds are still in the public space (Nexo wallet) adding that;

“The withdrawal was a routine transaction and represents a repayment of the loan in accordance with the latest market dynamics and the company’s normal asset management.”

nexus has continued to provide professional financial services to the digital economy since 2018. Nexo is among the world’s most trusted financial institutions providing lending services in the digital finance industry. According to the firm, it has more than 5 million users worldwide who transact with around 40 fiat currencies in more than 200 jurisdictions.

Crisis in the digital asset economy

The recent uproar comes after several recent crypto bankruptcies have left investors without access to their funds this year. Nexo customers are seriously dismayed considering that Celsius Network, which offers a similar offering to Nexo archived for bankruptcy after freezing customer accounts in June.

About eight states in the United States had as of early September archived Proceedings against Nexo regarding registration and interest-bearing cryptocurrency products.

According to state regulators in New York, Kentucky, California, Maryland, Oklahoma, South Carolina, Washington and Vermont, Nexo offered users interest-earning accounts without registering them as securities and without providing the required information.

Investors, according to state regulators, cannot make informed investment decisions without access to these financial statements.

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