Crypto lender Nexo wants to sue Bulgaria after office raids

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Struggling cryptocurrency firm Nexo is planning to sue the Bulgarian government after massive raids on the company’s offices in Sofia.

Nexo has complained about the actions of law enforcement authorities in response to the investigation against the company, the Bulgarian News Agency reported on January 13.

The company is reportedly preparing to take legal action against the authorities to seek compensation for damages caused by the brutal police interruption. A report suggested that investigators did not provide a search warrant for hours, while inspectors never identified themselves.

Nexo believes that the searches carried out in its offices yesterday were against the law and demonstrated the total incompetence of those who carry out this shameful action. Nexo also described the actions against the company as local Bulgarian arbitrariness, which allegedly aimed to destroy and loot a successful business.

The company also pointed out that Nexo does not offer any services to Bulgarian residents due to potential issues with the local government. The company also reaffirmed that it has complied with anti-money laundering requirements and sanctions against Russia, in addition to cooperating with major crypto intelligence firms such as Chainalysis.

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The company expressed confidence that it will win the lawsuit, which will provide Nexo with compensation for damages caused by the investigation, saying: The compensation Bulgaria will pay after the claims are filed and Nexo wins will be a another record amount of hundreds of millions, but, unfortunately, this will come at the expense of the Bulgarian taxpayer.

Siyka Mileva, spokesperson for Bulgaria’s chief prosecutors, said the investigation against Nexo involved more than 300 police, prosecutors and national security officers. She also noted that the investigation is currently limited to Bulgaria, with local police searching for 15 addresses linked to Nexo as of January 12. Other reports said that some foreign agencies were also involved in the investigation.

Siyka Mileva and Head of Cybersecurity in Bulgaria. Source: Bulgarian Press Agency

Nexos’ statement came shortly after the company reportedly saw massive outflows amid investigative reports.

According to crypto analytics platform Arkham Intelligence, Nexo has seen floods of releases since the news broke. Blockchain tracker Cielo Finance also reported large withdrawals from Nexo, highlighting transactions with over 200,000 USD Coin (USDC) leaving the platform on January 12.

Related: Voyager and Binance.US Give First Nod in National Security Investigation

A Nexo spokesperson, however, denied any anomalous outflow to Cointelegraph. Current releases on the platform that were seeing are normal given general market conditions, the Nexo rep said. The spokesperson added that outflows represented 2% of Nexos’ total assets under management of $2.3 billion.

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