crypto wallet address identified as NEXO 0x8fd withdrew 7,758.8 Wrapped Bitcoin (wBTC) from MakerDAO, which is roughly worth $153 million, just a few days after market analysts forecast a 50% decline in the price of NEXO as a result of regulatory pressure and investor fears.

A cease-and-desist order was filed against Nexo on September 26 by authorities from eight US states on the grounds that company had allegedly offered unregistered securities to investors without prior notice. Additionally, when Kentucky officials excluded Nexo, they claimed that Nexo was insolvent because its liabilities exceeded its ass

Following suit, blockchain researcher Peckshield alerted the transfer of 7,758.8 wBTC from MakerDAO on September 30. The name of the wallet, Nexo: 0x8fd, is one of the primary reasons the cryptocurrency community opted to associate the withdrawal of the funds with claims that Nexo was bankrupt.

Source: MakerDAO details overview. Source: Peckshield

The total value locked (TVL) on MakerDAO has decreased by 43.3% over the past year, as indicated above, and is now $7.11 billion.

Transaction details overview. Source: Peckshield

According to the transaction data, $50.1 million worth of Dai (DAI) tokens were transferred via DSProxy from Nexo: 0x8fd to a null address (perhaps a burn address). The transaction hash also verifies the transfer of $153.2 million in wBTC, as is shown in the screenshot up top.

While the crypto community suspects wrongdoing, Nexo spokesperson told Cointelegraph that the funds remain in the publicly tagged Nexo wallet, adding that:

“This routine transaction made yesterday represents a loan repayment in line with the latest market dynamics and as per the company’s standard treasury management.”

Additionally, Cointelegraph was informed that the aforementioned transaction was motivated by Nexo's current operational requirements. The Nexo representative added,  “As a result, and again driven by the current market context, we expect the loan size at Maker to continue to fluctuate in correlation with market volatility,” 

Data from Etherscan reveals that Nexo established three loans on the same day as transferring $530 million to MakerDao, further demonstrating that the transactions in question were conducted to meet Nexo's operational capital requirements.

Despite the ongoing FUD, Nexo keeps growing its market. Most recently, on September 27, Nexo bought a stake in Hulett Bancorp, a holding company that holds Summit National Bank, a bank with federal charter.

The acquisition enables Summit National Bank to accept bank account applications from Nexo and its customers. Additionally, Summit's escrow and custodial services, card products, asset-backed loans, and other services will be available to Nexo's retail and institutional clients situated in and out of the United States.

Disclaimer: This article has been updated to reflect Nexo's response stating that the fund transfer represents an operational transfer, involving the movement of funds from one Nexo address to another.

Oct 1, 2022
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