Nexo Facing Investigation by Bulgaria Authorities for Alleged Money Laundering and Tax Offenses
Bulgarian authorities announced subjecting crypto lender Nexo to large-scale investigations alleging computed-related fraud, money laundering and tax offenses. The Bulgarian prosecutor’s office confirmed the active investigations that prompted the assembling of a 300-person probe team.
Prosecutors Initiating Large Scale Investigations
Explaining the operation, the Bulgarian Prosecutor’s Office confirmed initiating active actions to counter illegal criminal conduct perpetrated by the Nexo crypto bank.
The prosecutors allege that Nexo allows users to draw interest earnings from idle cryptos. In addition, it accuses the crypto bank of availing crypto-backed loans that users are swapping for cash.
The Bulgarian officials cite a case of an individual who transferred cryptos and was later proven to finance terrorist activities.
Regulatory Crackdown Unbacked by Investigations
Nexo admitted to facing a probe from the Bulgarian authorities. Nexo’s Twitter thread restated its unwavering cooperation with the Bulgarian authorities and regulators. The company’s tweet revealed prioritizing the extra mile to ensure adherence to the country’s regulatory standards.
Nexo lamented the recent trend of regulatory crackdown portraying a kick first, inquire later. The crypto bank observed that the approach mirrors racketeering when abused within corrupt jurisdictions. Nexo expressed optimism about navigating the probe. In particular, the investigators have overlooked the claims of tax offenses.
News of Nexo facing an active investigation broke this morning, with a local media BNT reporting the incident. The BNT post in the early January 12 morning pointed out that Nexo’s headquarters in Sofia was raided for alleged financial crimes and contravening sanctions imposed against Russia.
Nexo Executive Dismisses Any Wrongdoing
Nexo chief executive. Antoni Trenchev, in a subsequent update, confessed the occurrence of the morning raid. He added that the authority’s inquiry centered on a Bulgarian entity. He demonstrated that the entity under the authorities’ radar lacks customer-facing operations. Instead, its interfaces are limited to operational expenditure.
BNT article suggested possible links between Nexo and fugitive Ruja Ignatova. The fraudster is sought for starting the OneCoin Ponzi scheme, where investors lost funds to the scam scheme. Nonetheless, the Prosecutor’s Office was noncommittal on including OneCoin in their investigations.
Editorial credit: Dennis Diatel / Shutterstock.com
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