The crypto community got sent into a frenzy when a Nexo-labeled address withdrew 7,758.8 Wrapped Bitcoin (wBTC), around $153 million from MakerDAO.
Security analytics firm PeckShield dropped the bomb that a crypto wallet address labeled Nexo 0x8fd is behind this whopping withdrawal as Nexo is already mounted with concerns from the regulatory side.
A few days back, California regulators filed a cease and refrain action against Nexo for allegedly offering interest accounts to the state’s residents without qualifying them as securities, along with concerns of insolvency.
The name of the wallet is one of the key reasons the crypto community opted to link the funds’ withdrawal with Nexo’s insolvency concerns. Clients of Nexo are understandably disappointed, given that Celsius Network, which provides a similar service to Nexo, declared bankruptcy in June after locking customers’ funds.
Also Read: Distressed Crypto Lender Celsius Files for Chapter 11 Bankruptcy
According to the transaction data, $50.1 million worth of DAI tokens were transferred via DSProxy from Nexo: 0x8fd to a null address. The transaction hash also verifies the transfer of $153.2 million in wBTC.
A Nexo spokesperson later noted, “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.”
Etherscan data reveals that Nexo opened 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.
The spokesperson stated, “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.”
