What happens to the deposited BTC/ETH if Nexo fails? Who holds the private keys to them coins?

Since Nexo is properly registered in the EU, and given the EU’s tendency to protect customers rather than company’s, Id honestly assume we would have a novelty court case over this issue, with the expected result that the collateral has to be given back out, if it is still available. But as it often happens in crypto, if the coins are sold illegally its hard to reverse that kind of damage, and its even more tough to access them if they were sent to another wallet. I do not really think that there is a reasonable possibility of this happening without Nexo deliberately destroying their business/turning criminal, because of the nature of this business and the contracts, and I would assume that not turning criminal is a much, much more profitable strategy in the long run, because Nexo is well positioned to assume dominance in this market for what we know so far.

August 21, 2022
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