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Citibank advises Nexo: takeover of insolvent projects planned



 Crypto lending platform Nexo says its strong balance sheet allows it to provide liquidity in the current market turmoil by buying up the assets of troubled crypto companies.


In a blog post, Nexo revealed that the platform is currently receiving advice from banking giant Citigroup on how best to acquire the assets of insolvent crypto firms so investors can regain access to frozen funds.


Last week, Antoni Trenchev, co-founder and managing partner of Nexo, told Bloomberg the current crypto crash reminded him of the 1907 panic, when major Wall Street institutions were forced to bail out other struggling companies:


"This, frankly, reminds me of the 1907 bank panic, when JP Morgan was forced to step in with its own resources and round up all the solvent people to salvage the situation."

In the blog post, Nexo explained that the platform has always operated a sustainable business model with no risky lending involved. Therefore, it now has "unsurpassed stability" and can support ailing companies:


"The crypto industry is facing a mass consolidation phase that has already started. The remaining solvent players like Nexo have agreed to buy up the assets of companies with solvency problems in order to provide their customers with immediate liquidity and relieve the entire industry."

The post also said that Nexo is already in talks with several struggling crypto firms and has offered them various options in terms of liquidity.


On June 13, Nexo announced that the platform was ready to take over part of Celsius' outstanding loans after it became public that Celsius was facing a major liquidity crisis .


On the same day, Nexo (NEXO) collapsed nearly 25 percent , falling to a fresh yearly low of $0.61 per token amid fears that Celsius' troubles will spread to the entire DeFi industry .


Such fears were revived three days later when investment firm Three Arrows Capital (3AC) defaulted on margin calls and posted a $400 million loss as several positions had to be liquidated. Nexo says the platform has nothing to do with 3AC.


Unlike many other struggling companies, Nexo has 100 percent liquidity and is able to meet its $4.96 billion in debt, according to US accounting firm Armanino .


Since the sharp drop on June 13, NEXO price has stabilized and is currently trading at $0.65, according to TradingView data.

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