- Crypto exchange platform, Nexo, undergoes raids by authorities at their offices in Sofia, capital of Bulgaria.
- The raids are part of an investigation operation targeting an organized crime group, tax crimes, money laundering, banking activity without a license and computer fraud.
- The operations involved over 300 agents including investigators, police officers and prosecutors.
Authorities have raided Nexo offices in Bulgaria as the crypto lender finds itself amidst international investigations. The raiding party entailed prosecutors, investigators, and foreign agents looking into alleged tax offenses, money laundering, and computer fraud, among other crimes. There are also reports of police officers stationed in front of all buildings associated with Nexo.
Nexo is allegedly part of a large financial criminal scheme involved in violations of international sanctions against Russia, which was the target of an operation that began several months ago hence the raid.
The spokeswoman to the prosecutor’s office, Sitka Mileva, told reporters that:
“In Sofia, active steps are being carried out as part of a pre-trial investigation aimed at neutralizing an illegal criminal activity of crypto lender Nexo.”
Mileva also said that they had established that the platform’s founders, Nexo, were Bulgarians and that the main activities of the platform took place in Bulgaria.
This is after the local news agency Standart had reported potential ties of Nexo with the Bulgarian government. They stated that Nexo’s founders were Antoni Trenchev, a former member of Parliament, and Georgi Shulev, son of former deputy prime minister Lydia Shulev.
The spokeswoman also revealed that over 300 agents are working on this operation, including investigators, security officers, and police officers.
Nexos’s Alleged $94 Billion Fraud
Bulgarian prosecutors reported that $94 billion had been transacted via Nexo over the past five years. They revealed that they had captured a suspect who financed terrorist activities by transferring cryptocurrencies over the Nexo platform.
Nexo responded to these raids via Twitter, saying”
“Unfortunately, with the recent regulatory crackdown on crypto, some regulators have recently adopted the kick first, ask questions later approach. It is bordering on racketeering in corrupt countries, but that too shall pass.”
However, the crypto firm expressed willingness to cooperate with the relevant authorities and regulators and hoped for better news in the coming weeks.
Nexo first faced problems with the United States in September 2022 about their interest service when the California Department of Financial Protection & Innovation filed a cease and refrain order against Nexo. The crypto exchange platform was then forced to gradually stop operations in the U.S. due to failure to reach an agreement with the regulators and authorities.
Regulators and authorities worldwide have intensified their requirements on crypto firms after last year’s fall of the major crypto exchange, FTX. Such firms expanded exponentially over the COVID-19 pandemic. Still, the decline of crypto markets in the following years has seen several crypto lending firms freezing withdrawals and causing losses and distress to their customers. Other firms have even filed for bankruptcy, such as Celsius, Voyager Digital Ltd, and BlockFi, who did so last year.
