Nexo, a widely known crypto lender, is the subject of a large-scale investigation in Bulgaria in regard to money laundering, computer fraud, tax offenses, etc. The Bulgarian Prosecutor’s Office highlighted that more than 300 people are involved in the operation in Sofia, the country’s capital city.
It said active investigations are underway to neutralize the illegal criminal activity of the Nexo crypto bank. Users can earn interest through Nexo on their idle cryptocurrencies. They can withdraw crypto-backed loans for cash. Officials said one person, who has been officially declared a financier of terrorist activities, used the platform to transfer cryptocurrencies.
Nexo took to Twitter to say that it is cooperating with relevant authorities and regulators. It said the platform had always gone the extra mile to adhere to regulatory standards. Nexo stated that with the recent regulatory crackdown on crypto, some regulators have taken up the kick-first, ask questions later approach. It added that this is bordering with racketeering in corrupt countries.
A local Bulgarian media said Nexo’s Sofia offices had been raided as part of an investigation into financial crimes, including violations of international sanctions against Russia. Antoni Trenchev, Nexo CEO, confirmed the raid. He said Bulgarian authorities are inquiring about a Bulgarian entity of the group that is not customer-facing but only has operational expenditure-related functions.