Co-Founders: "Insolvency, Bankruptcy is Nowhere in Nexo's reality."

The co-founders of Nexo, Antoni Trenchev and Kalin Metodiev, responded to a number of questions in a “Ask-Me-Anything” YouTube video on Tuesday. One viewer questioned whether their loaning system might be the next Celsius Network Ltd. or Voyager Digital Ltd., both of which went bankrupt previously this year.

“Insolvency, bankruptcy is nowhere in Nexo's reality,” Metodiev retorted.

He stated, “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 integration of technology and disruption of existing services.”

According to the two co-founders, the Switzerland-based crypto lending platform is nonetheless planning to expand into sectors like trading and create income and asset management tools for use in conventional capital markets.

Nexo has also marketed itself as a prospective buyer of struggling crypto businesses in previous months. Nexo authorized a $50 million token buyback campaign in August. In May, Nexo executed a repurchase for $100 million.

However, Nexo was criticized last month for providing interest-bearing funds without licensing the investment products as securities by officials from eight US states. Following this, officials from California, Kentucky, Maryland, New York, Oklahoma, South Carolina, Vermont, and Washington issued a cease-and- desist order, which Nexo had to contest.

Retail investors were targeted for marketing and utilization of Nexo's yield accounts.

By purchasing a holding in Hulett Bancorp, Nexo has acquired a stake in the US federally chartered bank governed by the Office of the Comptroller of the Currency. Summit National Bank is managed by a holding company called Hulett Bancorp.

The public was not made aware of the deal's precise details. The corporation emphasized that rather than the magnitude of the deal, the focus should be on the mutually beneficial effects that the equity purchase will have on the clientele of both organizations.

The business stated that Nexo will make additional efforts to increase its potential market in the US and gain more potential subscribers there in the months ahead.

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