Bulgarian Authorities are currently conducting a large-scale investigation into a crypto lender Nexo for money laundering and sanctions violations. According to a spokesperson for Bulgaria’s Attorney General Siika Mileva, the investigation is being conducted by 300 personnel from the National Security Service, the Gendarmerie and the Sofia Police.
Law Enforcement Raids Target Crypto Lender Nexo Over Money Laundering & Sanctions Violations
On January 12th, Bulgarian Police raided the offices of cryptocurrency lender Nexo in response to reports of suspicious activity. A spokeswoman for Bulgaria’s Attorney General Siika Mileva stated that the company was being investigated for violating sanctions against Russia. The Head of Bulgaria’s cybercrime unit, Svetlio Vasilev, had this to say:
An official declaration has been made that a client of the platform who had transferred cryptocurrency was an organizer of terrorist activities. The identities of those charged with these crimes are still unknown. We are looking for more than 15 addresses and are seeking new people of interest.
Nexo, which is based in London, immediately denied any wrongdoing and released a statement via Twitter. “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 on Thursday. Nexus added:
Unfortunately, with the recent regulatory crackdown against cryptocurrencies, regulators have taken the kick-first, ask questions later approach. It is a corrupt country, and it is at the brink of organized crime. But that too will pass.
These reports come after news in September 2022 that a half-dozen United States securities regulators investigated Nexo and brought actions against the firm’s lending service. The State of New York Attorney General Letitia James also filed a lawsuit against Nexo. Following James’s lawsuit, Nexo stated that it would be leaving the US market. A spokesman for Bulgaria’s Chief Prosecutor stated that about $94 billion had been funneled through Nexo in the past five years.
Nexo executives believe that the raid and investigation are unfounded. They also stressed that the company was not being investigated. “Nexo is always cooperating with relevant authorities and regulators,” they said in a statement on Thursday. Prosecutors stated that the investigation started several months ago, after suspicious transactions were reported. Allegedly, these transactions were meant to circumvent Western Sanctions against the Russian Federation.
What are your thoughts on the allegations against Nexo and the ongoing investigation into its business practices? Please let us know your opinion on the topic in the comments below.
