Wrapped Bitcoin Locked on MakerDAO Falls to 2022 Low After Nexo Withdraws Massive Amount of WBTC: Santiment

Blockchain analytics firm Santiment has announced that cryptocurrency lender Nexo has withdrawn most of its Wrapped Bitcoin (WBTC) from decentralized finance (DeFi) platform MakerDAO following legal troubles with multiple state regulators. said to have been withdrawn.

Santiment says that Nexo’s massive exit from MakerDAO will remove nearly half of all WBTC from the platform, with more “big moves” likely.

WBTC is an ERC-20 token pegged to the price of Bitcoin (BTC) that allows users to participate in DeFi activities using Bitcoin-based assets on Ethereum (ETH).

Nexo is making a big move and will be making more moves after acquiring almost 50% of WBTC held in MakerDao. We will be watching for signs of what Nexo plans to do with its free assets.

Last week, state regulators California, New York, Washington, kentucky, Vermont, south carolina, Maryland When Oklahoma alleged that Nexo violated securities laws with its Earned Interest Products (EIPs).

Nexo is cooperating with regulators on this matter and has not responded to EIP US accounts and balances since the US Securities and Exchange Commission (SEC) announced its stance on interest-bearing accounts on cryptocurrency lending platforms. I said no.

“We are working with federal and state regulators in the United States to investigate the past behavior of providers of revenue products, given the current market turmoil and bankruptcies of companies offering similar products. We understand their urge to meet their investor protection obligations.

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