Investigators claim that Nexo violated international financial sanctions against Russia and engaged in money laundering.
According to reports, investigators from all around the world have reportedly stormed the offices of embattled cryptocurrency lender Nexo.
Nexo's headquarters in the nation's capital allegedly came under search on January 12 by prosecutors, detectives, and foreign operatives, according to the Bulgarian news agency Standart.
The operation, which started a few months ago, aimed to create a large-scale financial criminal organisation involving money laundering and transgressions of international sanctions against Russia. The article says that Nexo was involved in the plot and supports its assertions with sources from Bulgarian National Television.
Georgi Shulev, the son of former deputy prime minister Lydia Shuleva, and co-founder Antoni Trenchev were notably referenced on television while discussing the alleged ties between Nexo and the Bulgarian government.
As soon as the news broke, Nexo quickly responded on Twitter to reassure its users that it conforms with cryptocurrency regulations all over the world and has strict AML and KYC procedures.
“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.
Nexo, launched in 2018, is a cryptocurrency investment platform that facilitates staking and borrowing against cryptocurrency. Last year, Nexo ran into trouble for the first time in the United States when, in September, the California Department of Financial Protection & Innovation issued a cease-and-stop order against the company because of difficulties with its interest service. Nexo opted to progressively wind down its operations in the U.S. after it could not open a line of communication with national regulators.