The investigators have accused Nexo of engaging in money laundering and violating international financial sanctions against Russia.
According to reports, officials from around the world have raided the offices of troubled cryptocurrency lender Nexo as part of a worldwide probe.
On January 12, the Bulgarian news agency Standart claimed prosecutors, detectives, and foreign agents had begun searching Nexo’s headquarters in the country’s capital.
A large-scale financial criminal enterprise involving money laundering and violations of international sanctions against Russia was the objective of the operation, which began a few months ago. The report asserts Nexo’s involvement in the scheme and cites sources from Bulgarian National Television to back up its claims.
The suspected connections between Nexo and the Bulgarian government were also highlighted on television, with co-founders Antoni Trenchev and Georgi Shulev—the son of former deputy prime minister Lydia Shuleva—being specifically mentioned.
In a swift response to the breaking news, Nexo took to Twitter to reassure its users that it complies with cryptocurrency laws worldwide and has robust AML and KYC procedures.
“Unfortunately, with the recent regulatory crackdown on crypto, some regulators have recently adopted the kick first, ask questions later approach. In corrupt countries, it is bordering with racketeering, but that too shall pass,” Nexo wrote.
Nexo, launched in 2018, is a cryptocurrency investment platform that facilitates staking and borrowing against cryptocurrency. Last year, Nexo ran into trouble for the first time in the United States when, in September, the California Department of Financial Protection & Innovation issued a cease-and-stop order against the company because of difficulties with its interest service. Nexo opted to progressively wind down its operations in the U.S. after it could not open a line of communication with national regulators.