An email was sent in the year 2020 and received by one of the ex-employees of Nexo.
The ex-employee parted ways with the company but attempted to warn of the situation of Nexo currently being investigated.
The cryptocurrency lender Nexo is the most recent participant in the market to run into difficulty.
This is a direct result of a lengthy investigation into possible illegal actions conducted by authorities in a foreign country.
Recently, the United States Securities and Exchange Commission (SEC) levied a fine of $45 million against Nexo.
It was for failing to register the offer and sale of its earn interest product (EIP, which resulted in the SEC issuing the fine.
The outlook is similarly dismal at the company’s headquarters in Sofia, which is located in the Bulgarian capital.
On January 12, at least 300 law enforcement officers, private investigators, etc., conducted raids at 15 of the company’s facilities.
The Email from Shulev
The child who has not yet been embraced will set fire to the entire hamlet in order to feel the warmth of its fire.
Moreover, the email sent to the management of the firm by Shulev may have been the initial spark that ignited the present scandal surrounding Nexo.
In the email sent by Shulev, the author makes three significant allegations, all of which are directed at Kosta Kantchev, the co-founder of Nexo.
This person is with whom Shulev established the company in August 2017.
Furthermore, Kalin Metodiev and Antoni Trenchev, who were both instrumental in the establishment of the company, now hold the position of partner.
These accusations point to abuse schemes, illegal behavior, and terrible company mismanagement.
Complaints of the Ex-Employee
The first accusation is that Kantchev has acquired Shulev’s share of the company’s equity without his permission.
On top of it, Shulev mentions that he and Kantchev made a pact to equally divide the company’s shares when they first launched the business.
Additionally, Nexo guaranteed stock shares to Sokol Iankov, who was the co-founder and CEO of Cedissimo.
This was done as a formal organization.
Metodiev, Trenchev, alongside a portion of the managers of the corporation also intended to receive these shares as part of their compensation.
Even then, according to Shulev, these agreements were never maintained despite the many opportunities that were presented.
Plus, Shulev alludes to a management statement that Iankov distributed on the 5th of June in the year 2020.
In this email, Iankov brings to the attention of management the fact that Kantchev lied about the transaction.
In spite of the clear concern expressed in the communication, it is not known whether Trenchev and Metodiev received their shares.
Email further clarifies the company is operating as the sole owner with Kosta.
Previously, on the 21st of August in 2019, Shulev had a scheduled appointment with Kantchev.
The discussion at this get-together was supposed to be about how the shares should be divided up among the rightful owners.
According to Shulev, Kantchev unexpectedly called a close to the conference.
He then left the very next day, so avoiding any further debate on the distribution of the remaining shares.
After two weeks had passed, it was said that Kantchev returned to the office as if the encounter had never happened.
Shulev asserts that he was unable to access the company after the arrival of Kantchev on September 13. This was exactly one week after Kantchev’s arrival.
It was made possible for him to access his accounts, money and all at the same time.
After then, according to Shulev, he made a number of attempts to get in touch with Metodiev and Kantchev to know about the situation.
However, he was unsuccessful in doing so.
He is aware that the current state of affairs mirrors Kantchev’s former plot to dismiss Metodiev in a manner analogous to his own.
I guess that, to this day, he is the only person who has shares in Nexo, a company that actually owns anything.”
Ongoing Illicit Activities
The second allegation that is made in Shulev’s email is much more problematic than the power struggles that occur within the organization.
According to Shalev, the company is involved in criminal activity on a consistent basis not just in Bulgaria.
They do in a large number of other countries too.
As per the email sent by Shulev, this would imply that Nexo is taking advantage of its clients and the resources they provide without their knowledge.
He claims that Kantchev is engaging in illegal activities while making use of workers.
However, previous regulatory investigations have not uncovered these practices.
According to Shulev, employees unknowingly participate in daily criminal acts in a number of different locales.
These acts take place in a variety of settings.
The penalties that the SEC issued to Nexo earlier this week lend some credence to the charges that have been made.
Bulgarian authorities are already conducting an investigation quite similar to this one.
Due to this, it is highly likely that this will not be the last time we find out about wrongdoing committed by Nexo.
What Went On With Zeus Capital?
The last accusation made in the email refers to three aspects.
These are the blockchain tech startup Chainlink, the activist investor Nexo, and the asset management company Zeus Capital.
When Nexo announced that they would be working together with Chainlink in July of 2020 that is when all of this began.
As a direct result of the arrangement, Chainlink’s native coin, known as LINK, was integrated into the Nexo ecosystem.
However, just one week later, Zeus Capital came out with research regarding Chainlink.
This mentioned that above all else it was a Ponzi scheme.
These assertions have since been completely debunked, but they were published just one week afterward.
In response, Zeus Capital sent an email to investors.
They recommended they sell any stock holdings they had in LINK. But now comes the shocking part.
According to Shulev, Chainlink’s very own partner, Nexo, was the one responsible for Zeus Capital’s damaging report.
He was operating as an assassin from within the company.
Furthermore, he asserts that the type-form code utilized by the websites of Nexo and Zeus Capital are identical to one another.
This demonstrates that they are playing with the same hand.
Even then, after the type-form code on Zeus Capital’s website was brought to light by @ChainLinkGod on Twitter, it mysteriously disappeared.
The question is, then, why does Nexo desire to act in such a manner?
Nexo would be required to open a short position on LINK in order to capitalize on the situation and generate profits.
This will only occur when additional investors will concur with Zeus Capital’s assumption.
Shulev draws attention to a compatibility issue that exists between Nexo and its customers who have purchased credit using LINK tokens.
According to Shulev, a large number of people still believe tokens aren’t truly sold to Binance but rather are in a protected location on BitGo.
It is still unclear whether the allegations made in the email sent by Shulev actually pertain to the events that took place.
In spite of this, it does present an interesting narrative of the crypto lender’s fall from grace when viewed in retrospect.
Nexo said in December that it will progressively cease supplying its products and services in the United States.
It is unknown what the future holds in store for crypto’s newest fallen angel, with such shocking news. The doors of its Bulgarian headquarters have been as damaged as the company’s own reputation.
