Bulgarian Crypto Bank Will Sue State for Money Laundering – Eurasia Review

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By Svetoslav Todorov

Bulgarian crypto credit bank Nexo announced on Friday that it will sue the Bulgarian state as much as it can after police raided their offices on Thursday.

The company, which supports more than 60 cryptocurrencies, is under investigation for money laundering, providing banking services without the required license, tax crimes reported by the United States and violations of international sanctions against Russia, among others.

The compensation Bulgaria will pay after Nexo wins the case will be another record high in the hundreds of millions, but, unfortunately, it will be at the expense of the Bulgarian taxpayer, the company said on Friday.

According to the crypto platform, no immediate search warrant was given and police gave no identification, calling the raid a publicity stunt and a disgraceful act.

On Thursday, the National Security Agency raided Nexo’s offices in Sofia. The prosecution office initially did not name the company and only described it as a company that operates globally through companies in the UK, Switzerland, the US and offshore destinations.

It is not registered here but is operationally managed from Sofia. A total of 15 addresses are verified, he said.

Nexo was founded in 2018 and operates through a number of entities in different markets. It belongs to Antoni Trenchev, former MP in 2014-2015, and Kosta Kanchev.

According to Bulgarian national television, they are currently located in Dubai. Founder and former member Georgi Shulev, who left the board in 2019, is currently being questioned by authorities as a witness.

On December 6, Nexo ceased operations in eight US states after unsuccessful discussions with state and federal regulators. The company described regulations in the United States as an impossible environment.

An investigation by Bulgarian newspaper Capital Weekly, published in October 2021, said the company had made a profit of around $100 million in the previous three years, planned to reorganize as an ordinary bank, but existed in a gray area of ​​regulation and was associated with worrying reports about the treatment of staff.

According to previous statements by Nexo, more than 650 people are currently employed in Sofia. The company, which claims to be one of the largest in the world when it comes to crypto assets, said it has processed over $130 billion for more than 5 million users in over 200 jurisdictions. At the same time, there are no public reports on Nexos activity.

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