Four Bulgarians Charged with Money Laundering and Fraud in Crypto Lender Nexo Investigation
• Four Bulgarians were charged with money laundering and fraud in connection with the crypto lender Nexo.
• The prosecutors conducted searches in Nexo’s headquarters and other related locations in Sofia, Bulgaria.
• Nexo denied any wrongdoing, claiming that the investigations and charges are part of a politically-motivated attempt to frame the company.
This week, a major investigation into alleged illegal activities was launched in connection with the crypto lender Nexo. Four Bulgarians were charged with money laundering and fraud, and the prosecutors conducted searches in Nexo’s headquarters and several other related locations in Sofia, Bulgaria. According to the prosecutors, Nexo has processed $94 billion worth of crypto in the last five years, and upon further investigation, it was discovered that several of these transactions violated E.U. and U.S. sanctions imposed on Russia and some were even linked to terrorism funding.
The head of Bulgaria’s National Investigation Service remarked that this is an unprecedented investigation and a joint effort made by U.S., British, and other authorities. The four charged Bulgarians had been active in the U.K., Switzerland, Bulgaria, and the Cayman Islands since 2018, and they were also found to possess several luxury properties in Dubai and the Bahamas, including yachts and artworks.
In response to the investigation and charges, Nexo has denied any wrongdoing, claiming that it is a politically-motivated attempt to frame the company. This suspicion is further encouraged by the fact that Nexo had previously decided to end operations in the United States and phase out products during the course of the following months due to over a year of failed negotiations with U.S. federal and state agencies.
The investigation is still ongoing, and the authorities are yet to make any comments on the possible outcome. However, it is clear that the investigation has brought in a lot of attention to the crypto sector, and it is likely to have a major impact on the industry.