The spokesperson of the chief prosecutor in Bulgaria, Siika Mileva, today confirmed that a large operation against a large-scale scheme involving Nexo cryptobank has taken place in the capital.
According to reports by local media, Dnevnik, there are ongoing investigations into the actions of an organized criminal group, money laundering, tax crimes, banking without a license and computer fraud. Prosecutors, investigators from the National Investigation, together with foreign agents have begun raids of the Bulgarian offices of the company that trades in cryptocurrencies around the world. A total of 15 addresses are being searched, and over 300 people from different services are working on the case.
Mileva highlighted that in the last 5 years, $94 million turnover have passed through the platform. She also hinted that one of the clients of the platform is an individual who finances terrorist acts.
Furthermore, the prosecutor’s office stated that more than 3.6 million transactions have gone through Nexo, some of which involving “risky players”.
Nexo has not responded to local media for comment but has posted on Twitter, speaking against the investigation. The company also said that they have taken preventive measures against money laundering.
The company tweeted:
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 was founded in 2017 by Kosta Kanchev and Antoni Trenchev. The company operates globally through companies in Great Britain, Switzerland, the USA and offshore destinations. The crypto company is not registered in Bulgaria but its operations are managed from there.
Eight US state regulators have filed lawsuits against Nexo Group in September for allegedly failing to register its Earn Interest Product. The states of New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont have ordered the company to stop offering its deposit products in their territories.
