According to various reports, Bulgarian law enforcement officials are investigating crypto lender Nexo for alleged money laundering and sanctions violations. Siika Mileva, spokeswoman for Bulgaria’s attorney general, said the Nexo investigation is a large-scale operation involving 300 investigators from various agencies, including the National Security Service, the Gendarmerie and the Sofia Police.
Bulgarian law enforcement raids Crypto Lender Nexo offices on suspicions of money laundering and sanctions violations
On January 12, 2023, reports indicate that Bulgarian law enforcement officials raided the offices of cryptocurrency lender Nexo. The company is under investigation for violating sanctions against Russia and money laundering offences, according to Siika Mileva, a spokeswoman for Bulgaria’s attorney general. The head of Bulgaria’s cybercrime unit, Svetlio Vasilev, stated:
A client of the platform who transferred cryptocurrencies has been officially declared an organizer of terrorist activities. It remains to be determined who will be charged with the crimes. More than 15 addresses are being sought and new persons of interest are being established.
Nexo, which is based in London but also operates offices in Sofia, where the raid took place, immediately denied any wrongdoing in a statement on Twitter following the story. “Over the years, we have turned down a lot of business because Nexo never compromises on our strict anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business,” the company said Thursday. Nexus added:
Unfortunately, with the recent regulatory crackdown on cryptocurrencies, some regulators have recently taken the kick first, ask questions later approach. In corrupt countries, it is on the verge of organized crime, but that too shall pass.
The news follows reports in late September 2022 that half a dozen United States securities regulators were investigating Nexo and filed actions against the firm’s lending services. The state of New York and Attorney General Letitia James also filed a lawsuit against Nexo. Following James’s lawsuit, Nexo stated that it would exit the US market. The spokesman for Bulgaria’s chief prosecutor detailed that approximately $94 billion was channeled through Nexo in the last five years.
Nexo executives believe the investigation and raid are unfounded and further emphasized that the company “is always cooperating with relevant authorities and regulators.” In addition to searching the offices in Sofia, prosecutors detailed that the investigation began several months ago after alleged suspicious transactions were carried out. Allegedly, the reported transactions were intended to circumvent Western sanctions imposed against the Russian Federation.
What do you think about the allegations against Nexo and the ongoing investigation into its business practices? Let us know what you think about this topic in the comments section below.
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