bne IntelliNews – Bulgaria raids offices of crypto lender Nexo

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Bulgaria’s public prosecutor’s office has launched an investigation into alleged financial violations by cryptocurrency lender Nexo, raiding more than 15 locations in the capital Sofia on January 12, Siyka Mileva, spokeswoman for chief prosecutor Ivan Geshev, told reporters. quoted by Dnevnik media.

Nexo confirmed the information, saying police did not provide a search warrant for hours, nor did they tell company management what the charges were.

Mileva said, quoted by the Dnevnik news outlet, that the police were carrying out an operation linked to a large-scale financial fraud scheme. She added that the charges include money laundering, tax crimes, unlicensed banking and computer fraud.

More than 300 people from several Bulgarian investigative bodies took part in the operation.

Mileva also said that for five years, Nexo’s revenue was $94 billion and that among its clients was an individual financing terrorist activities. She added that Nexo operated through many companies, many of which were just “mailboxes”.

Nexo commented on Twitter that the prosecution’s actions looked like racketeering.

Unfortunately, with the recent regulatory crackdown on crypto, some regulators have recently adopted the kick first, ask questions later approach. In corrupt countries this borders on racketeering, but this too will pass, Nexo wrote on Twitter.

In a letter to bTV, the company said it would sue Bulgaria because authorities have not presented any official documents for the raids or for the arrests.

We have not yet received any official documents that would present claims against Nexo. However, this is offset by an unnecessary demonstration operation with the participation of individuals who refuse to legitimize themselves and have not shown search warrants for hours, Nexo wrote.

He added that people were being arrested without warrants and everything that was happening was against the law.

Nexo said it would sue Bulgaria over the raids and it would cost taxpayers hundreds of millions.

Nexo, founded and run by two Bulgarians Kosta Kunchev and Antoni Trenchev in 2017, accepts deposits in cryptocurrencies on which it pays interest to customers. It also provides loans using cryptocurrencies as collateral.

Globally, Nexo operates through companies registered in the UK, Switzerland, the US and offshore destinations, according to the weekly Capital.

In Bulgaria, Nexo owns NDS, a company with approximately 600 employees.

This is not the first case against Nexo. In September, New York State filed a lawsuit against the company for alleged illegal operations and fraud. Seven other US states have also filed lawsuits against the company, ordering Nexo to stop offering its deposit products in their jurisdictions, according to Capital.

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