According to local sources, Siika Mileva, a representative for the chief prosecutors in Bulgaria, disputed that the investigation against the cryptocurrency lending company Nexo was being conducted for political reasons. The remarks were made in reaction to assertions that the probe was related to political donations made by the Company.
According to Mileva,
“It has become a national sport to attack the institutions when a prosecutor opens an inquiry that could have an impact on someone’s financial interests.”
The Company’s offices were inspected on January 12 by a team of prosecutors, investigators, and foreign agents in Sofia, the capital of Bulgaria. The operation was focused on a massive money laundering network and transgressions of international sanctions on Russia.
Nexo allegations as the Company threatens legal actions
Four people were charged with money laundering, tax offenses, computer fraud, and unauthorized banking less than 48 hours after Nexo’s offices were raided. Two people were freed after posting bail totaling about $550,000.
The two other individuals have been listed as internationally wanted individuals and have not been traced in Bulgaria. It’s unclear if the individuals had any connection to the cryptocurrency company.
According to Mileva, Nexo’s transactions totaled $94 billion over the course of five years. The spokesperson mentioned that authorities have been looking into an organized criminal gang that has been operating across numerous countries since the start of 2018.
Nexo expressed its displeasure about the police raid on Twitter and said that the Company was ready to sue for damages resulting from the abrupt police disruption. The government’s strategy was described by the company as “kick first, ask questions later.”
The Company claims that for hours, investigators failed to provide a search warrant and that inspectors never introduced themselves to Nexo staff members.
Users can stake and borrow money against cryptocurrencies on the investment platform run by Nexo. Despite having offices in Bulgaria, the company doesn’t offer services to those who live there because of possible regulatory problems. The firm was established in 2018 and has locations in Switzerland, Bulgaria, and the United Kingdom.
Due to a lack of transparent regulatory collaboration with U.S. authorities, Nexo stated in December 2022 that it will phase out its activities in the United States.