Nexo withdraws $153 million in WBTC from MakerDAO

By: Michael Wilson

October 2, 2022 5:52 AM

Due to the wallet's name, Nexo: 0x8fd, the cryptocurrency community connected the withdrawal of funds to rumors of Nexo's insolvency.

A cryptocurrency wallet address with the label NEXO 0x8fd withdrew 7,758.8 Wrapped Bitcoin (WBTC) from MakerDAO, which at the time was worth about $153 million. This came just days after market analysts predicted a 50% drop in NEXO price due to regulatory pressure and investor concerns.

On September 26th, regulators in eight states in the United States issued a cease-and-desist order against Nexo for allegedly offering unregistered securities to investors without providing adequate disclosure. Furthermore, Kentucky authorities have charged Nexo with insolvency because its liabilities exceed its assets.

The same thing happened on September 30th, when blockchain researcher Peckshield tipped off the world to MakerDAO's transfer of 7,758.8 WBTC. The name of the wallet, Nexo: 0x8fd, was likely a contributing factor in the crypto community's decision to associate the withdrawal of funds with rumors of insolvency on the part of Nexo.

Summary of MakerDAO's Features. The Peckshield Report

As can be seen in the table above, MakerDAO's TVL (total value locked) has dropped by 43.3% in the past year, and is now worth only $7.11 billion.

A Review of the Financial Accomplishment The Peckshield Report

Nexo: 0x8fd sent DAI tokens worth $50,1,000,000 to an unknown recipient via DSProxy, according to the transaction logs. The recipient may have been a burn address. The transaction hash also verifies the $153.2 million WBTC exchanged hands, as shown in the previous screenshot.

A Nexo spokesperson has confirmed that the funds are still in the publicly tagged Nexo wallet, despite widespread suspicions of wrongdoing in the cryptocurrency community.

"This was a standard loan repayment made yesterday in accordance with current market conditions and company policy regarding the management of the company's treasury."

Nexo's expansion continues regardless of the persistent rumors to the contrary. Recent news includes Nexo's September 27 investment in Hulett Bancorp, the holding company that owns Summit National Bank, a federally chartered bank.

As a result of the purchase, Nexo and its customers can now establish banking relationships with Summit National Bank. Summit also provides asset-back loans, card products, and escrow and custodial solutions, all of which will be made available to Nexo's retail and institutional clients in the United States.