Troubled cryptocurrency lender Nexo is going through extra stress from regulators, with its workplaces reportedly raided as a part of a global investigation.
A gaggle of prosecutors, investigators and international brokers searched the corporate’s workplaces within the Bulgarian capital metropolis of Sofia, native information company Standart reported on Jan. 12.
The operation was reportedly initiated just a few months in the past, focusing on a large-scale monetary legal scheme allegedly involving cash laundering and violations of worldwide sanctions in opposition to Russia. Citing sources the Bulgarian Nationwide Tv, the report alleges Nexo’s involvement within the scheme.
The Bulgarian Nationwide Tv additionally highlighted Nexo’s alleged ties with the federal government of Bulgaria, specifying that Nexo was co-founded by former Member of Parliament Antoni Trenchev and Georgi Shulev, the son of former deputy prime minister Lydia Shuleva.
Nexo was fast to react to the most recent information, taking to Twitter to guarantee the general public that the corporate has been compliant with international crypto rules and has enforced strict Anti-Cash Laundering and Know Your Buyer insurance policies.
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“Sadly, with the current regulatory crackdown on crypto, some regulators have just lately adopted the kick first, ask questions later strategy. In corrupt international locations, it’s bordering with racketeering, however that too shall cross,” Nexo wrote.
Over time, now we have turned down numerous enterprise as a result of Nexo by no means makes compromises with regard to our very stringent anti-money laundering and know-your-customer insurance policies. However now we have at all times identified that that is the way you construct a sustainable enterprise. 1/
— Nexo (@Nexo) January 12, 2023
Based in 2018, Nexo operates a cryptocurrency funding platform, additionally permitting customers to stake and borrow in opposition to crypto. The agency first encountered points in the US in 2022, with the California Division of Monetary Safety & Innovation submitting a desist-and-refrain order in opposition to it relating to its curiosity service in September. Nexo ultimately determined to progressively stop operations within the U.S. after failing to discover a dialogue with native regulators.
