1. Bulgarian law enforcement officials are investigating crypto lender Nexo for alleged money laundering and sanctions violations.
2. On Jan. 12, 2023, Bulgarian law enforcement raided Nexo’s offices in Sofia as part of the investigation.
3. Nexo denied any wrongdoing and stated that the company has stringent anti-money laundering and know-your-customer policies.
Bulgarian law enforcement officials have launched a large-scale investigation into crypto lender Nexo for alleged money laundering and sanctions violations. Siika Mileva, a spokesperson for Bulgaria’s attorney general, confirmed that 300 investigators from various agencies are involved in the probe. This led to a dramatic raid on Nexo’s offices in Sofia on Jan. 12, 2023.
The raid was conducted by the National Security Service, Gendarmerie, and Sofia Police and was triggered by evidence of a client of the platform who transferred cryptocurrency and was officially declared an organizer of terrorist activity. Svetlio Vasilev, the head of Bulgaria’s cybercrime unit, announced that more than 15 addresses are being searched and new persons of interest are being established.
In response to the allegations, Nexo denied any wrongdoing in a statement on Twitter. The company, which is based in London but also has offices in Sofia, said it has always had stringent anti-money laundering and know-your-customer policies in place. “Unfortunately, with the recent regulatory crackdown on crypto, companies like Nexo are being unfairly targeted by law enforcement,” the statement read.
It remains to be seen how the investigation will play out and what the consequences will be for Nexo. The company could face fines or other penalties if it is found guilty of the allegations. In the meantime, it has urged its customers not to be concerned, stating that it is fully compliant with applicable laws and regulations and will continue to serve its customers with the highest levels of security and transparency.