Nexo threatens legal action against anonymous Twitter account

Crypto lender Nexo has issued a cease and desist letter in an effort to silence an anonymous Twitter account.

The account, which styles itself in the third person as ‘Otter,’ published a series of tweets on June 26 claiming that Nexo’s co-founders had stolen funds from a charity. The tweets have generated thousands of likes and retweets.

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Later the same day, Nexo published two items on its website — one of them a cease and desist letter taking aim at the Twitter account, the other a blog post that seeks to debunk some of the claims made by Otter.

The exchange comes at a moment of high tension for crypto lenders. Several large lending firms — notably Celsius and Babel — have halted withdrawals. Rival lender BlockFi got a $250 million bailout in the form of a revolving credit facility from FTX, the exchange, on June 21.

Nexo, which offers interest rates of 18% on crypto holdings, claims to serve more than four million customers. It has over $12 billion in assets, according to its website.

About Author

Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.