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Blockchain analytics firm Santiment claims crypto lender Nexo has withdrawn a significant portion of encapsulated Bitcoin (WBTC) from decentralized finance (DeFi) platform MakerDAO, following the company’s legal issues with several government regulators.
Santiment says Nexo’s massive withdrawal from MakerDAO has removed nearly half of WBTC from the platform and more “big moves” are likely to come.
WBTC is an ERC-20 token linked to the price of Bitcoin (BTC) that allows users to participate in DeFi activities with a Bitcoin-based asset on Ethereum (ETH).
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“Nexo has taken a huge step forward and likely plans to do more after withdrawing nearly 50% of WBTC held at MakerDao. This left $120 million in WBTC still locked in CDPs (secured debt position). We will be watching for signs of what it plans to do. Nexo to do with its free assets. »
Last week, regulators in California, New York, Washington, Kentucky, Vermont, South Carolina, Maryland and Oklahoma alleged that Nexo violated securities laws through its interest-earning product (EIP).
Nexo said it has worked with regulators on the issue and no longer welcomes US EIP accounts and balances since the US Securities and Exchange Commission (SEC) took a stance on interest-bearing accounts for crypto-lending platforms.
“We have worked with federal and state regulators in the United States and understand their desire, given the current market turmoil and bankruptcy of companies offering similar products, to fulfill their mission to protect investors by reviewing past behavior of providers of products of interest.”
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