Nexo dodges $219 million bullet days before FTX solvency crisis

The company withdrew its remaining balance from FTX at the 11th hour and exceeded the struggling exchange's weekly cash outflows. New

According to a November 8 tweet, cryptocurrency lender Nexo currently has no net exposure to the current crisis affecting cryptocurrency exchange FTX and cryptocurrency trading firm Alameda Research. Nexo also explained that it had withdrawn its entire fund balance from FTX in the "last few days".

Alex Svanevik, CEO of blockchain analytics platform Nansen, confirmed the story, providing data showing that Nexo withdrew over $219 million from FTX between November 1 and November 8. This also ranks Nexo as the top entity for cash outflows in the past week.

The company appears to have dodged a major bullet, as on November 8, FTX announced that it would end all non-fiduciary consumer withdrawals. Continuing its assessment of the situation, Nexo said it has a small loan to Alameda Research representing less than 0.5% of its assets. The loan was fully collateralized by digital assets, which Nexo said was sold on November 6. According to the company, the transaction resulted in "100% principal recovery and $0 loss to the business".

. @Nexo has $0 net exposure to FTX/Alameda. As a conservative institution with stringent risk controls, @Nexo has protected *all* funds by withdrawing their entire balances from the exchange over the past few days, as evidenced by on-chain data: https://t.co/py8fzBDKbP1/

Nexo has so far avoided major industry-wide risk events this year, including the collapse of Terra, hedge fund Three Arrows Capital and crypto lender Celsius. According to a real-time audit of assets held by the company, Nexo currently has over $3.4 billion in consumer liabilities, with a collateral rate of over 100%, making them fully backed by assets. from Nexo...