The investigators have alleged that Nexo is involved in money laundering and violating global financial sanctions against Russia.
Troubled cryptocurrency lender Nexo is facing more pressure from regulators as its offices have been reportedly raided as part of an international investigation.
A group of prosecutors, investigators and foreign agents started searches of Nexo’s offices in the Bulgarian capital, the local news agency Standart reported on Jan. 12.
The operation was reportedly initiated a few months ago, targeting a large-scale financial criminal scheme allegedly involving money laundering and violations of international sanctions against Russia. Citing sources of the Bulgarian National Television, the report alleges Nexo’s involvement in the scheme.
The television also highlighted Nexo’s alleged ties with the government of Bulgaria, specifying that Nexo was co-founded by former parliament member Antoni Trenchev and Georgi Shulev, the son of former deputy prime minister Lydia Shuleva.
Nexo was quick to react to the latest news, taking to Twitter to assure the public that the company has been compliant with global crypto regulations and has enforced strict Anti-Money Laundering and Know Your Customer policies.
Related: Sanctions couldn’t ‘pull the plug’ on Tornado Cash: Chainalysis
“Unfortunately, with the recent regulatory crackdown on crypto, some regulators have recently adopted the kick first, ask questions later approach. In corrupt countries, it is bordering with racketeering, but that too shall pass,” Nexo wrote.
Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/
— Nexo (@Nexo) January 12, 2023
Founded in 2018, Nexo operates a cryptocurrency investment platform, also allowing users to stake and borrow against crypto. The firm first encountered issues in the United States last year, with the California Department of Financial Protection & Innovation filing a desist and refrain order against Nexo regarding its interest service in September. Nexo eventually decided to gradually cease operations in the U.S. after failing to find a dialogue with local regulators.
