Nuggets News CEO criticized for alleged unpaid loans and investments

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Alex Saunders, the popular crypto influencer behind Nuggets News, is faced with multiple claims that he was unable to pay off crypto loans, as well as allegations that funds invested in a new project were diverted to a cryptocurrency exchange …

Saunders is one of Australia’s most respected teachers of cryptography. It is a paid service and has 140,000 YouTube subscribers.

In recent days, crypto Twitter has been on fire with accusations that Saunders has run out of capital. Numerous people, including YouTuber Bitboy require that Saunders personally owes them several bitcoins each, prompting the Australian Broadcasting Corporation (ABC) and the Australian Financial Review (AFR) to investigate.

According to AFRSaunders received roughly $ 7 million from 100 or so investors seeking to support his upcoming stablecoin project, Decentral Bank, after promoting him to Nuggets News followers in April. The publication claims to have talked to more than a dozen investors who supported the project, each of whom estimated their contribution at about $ 50,000.

AFR reported that investments in Saunders’ wallet appeared to be quickly transferred to the popular FTX cryptocurrency derivatives exchange. Exchange founder Sam Bankman-Freed said the team is already investigating accusations

Cointelegraph contacted Saunders to offer him the opportunity to respond to the allegations, and will update this story if he does.

Shot in the heart

Saunders’ public fall seems to have begun after he appeared live with the controversial HEX founder. Richard Hart, July 19.

The pair’s exchange turned hot after Saunders provided data from crypto data aggregator Santiment, in which he argued that HEX order books are thin, arguing that his markets were unable to sustain meaningful selling pressure.

After downloading Saunders from the live stream, Hart took to Twitter, sharing obvious screenshots from private conversations with Saunders, claiming that he was “begging” him for a 50 BTC loan and was trying to request a “pre-allocation” in the upcoming token.

After the publication of Head, Decentral Bank supporters reportedly feared their investments, and many demanded compensation. AFR claimed to have seen posts on a private Facebook group in which Saunders agreed to pay back to his investors, although the refund has yet to be made.

ABC July 28 report claims to have seen screenshots of a dialogue between Saunders and an overseas hedge fund manager confirming Bitcoin borrowing requests on two separate occasions, while the fund claims to have not returned the BTC it lent to Saunders back in January. One of the messages attributed to Saunders reportedly reads:

“Sorry to put this on you, buddy. But I felt I could trust you. I would increase my FTX account 10x. Then he became greedy. ”

Connected: SEC Completes Settlement With US BitConnect Promoters For Millions

ABC says it has spoken to five people in Australia, the UK and New Zealand who claim Saunders owed them money.

Saunders has yet to respond to social media allegations and does not appear to have been active on Twitter since July 23.

Blockchain Australia stated that he was aware of the claims against Saunders and was informed that the charges were “under consideration by his legal representative.” Saunders was appointed to the Board of Directors of Blockchain Australia in 2019.

Nuggets News has evolved into a collective shift platform. Managing Director Ben Simpson released an updated video to members on Sunday stating that he asked Saunders about the allegations.

“He looked me straight in the eye and said,” Don’t worry, you know, there are a few people I owe money to, I have a repayment plan, don’t worry about that. “

Simpson said ABC Saunders no longer participates in Collective Shift as a shareholder or member.