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Bulgarian Police Raided Nexo Office on Suspicion of Money Laundering

Bulgarian police have raided Nexo's premises on accusations of laundering money, tax evasion, conducting unlicensed banking activities, and computer fraud related to organized crime.

Photo by Spenser H / Unsplash

Nexo's offices in Bulgaria have saw visits from the law enforcement on suspicion of money laundering, tax evasion, illegal banking activities, and computer fraud connected to a criminal organization.

The Bulgarian authorities conducted the search operation at the office of the crypto currency lender Nexo, as part of their most recent investigation. The Bulgarian police searched Nexo's office in Sofia on Thursday, January 12.

A representative for Bulgaria's chief prosecutors stated (1) that in addition to tax offenses and money laundering, the authorities are also looking into the possible role of Nexo in illegal banking activities. Siyka Mileva was the spokesperson for the chief prosecutors in Bulgaria.

According to Mileva, the Bulgarian police have searched 15 Nexo-related workplaces throughout the country.

Antoni Trenchev, a co-founder of Nexo, also verified the raid. In a conversation with Bloomberg, during which he was discussing the operational costs of the corporation, he stated:

"They are wondering about a Bulgarian firm that is part of the group but does not deal directly with customers but rather just performs activities related to operational expenses. It is clear that this is a well-planned assault, given the ridiculous charges that have been made."

Amid the upheaval in the crypto currency market and the failure of large payers, the crypto currency lending platform Nexo has been confronted with significant liquidity and operational issues.

Recently, Nexo also decided to discontinue its offer for the possible purchases of crypto currency lender Vauld, which temporarily halted withdrawals in July last year.

The most recent decision was reached after the two sides had been discussing with one another for six months. However, neither party can identify a middle ground on which they can agree.

Additionally, earlier this year, Vauld did not accept the deal presented by Nexo. They stated,

"We have taken into consideration the terms of the Final Nexo Proposal and consulted with the COC, and we have come to the unanimous conclusion that we do not accept your proposal as it stands."

Nexo Will Leave the US Market

The most recent searches of Nexo's office in Bulgaria took place approximately one month after the London-based cryp tocurrency lender announced that it would cease operations in the United States due to the failure of 18 months' worth of long discussions with the federal and state regulators. Charges were brought against Nexo by regulatory authorities in eight different states in the United States.

"It is now unfortunately clear to us that despite rhetoric to the contrary, the United States refuses to provide a path forward for enabling blockchain businesses, and we cannot give our customers confidence that regulators are focused on their best interests," said Nexo (2).
"We cannot give our customers confidence that regulators are focused on their best interests."

After the significant drop in the crypto currency market the previous year, US officials have recently been going after many crypto firms. After encountering difficulties with liquidity in the market, many companies temporarily halted customer withdrawals.