Troubled cryptocurrency lender Nexo is facing more pressure from regulators as its offices have been raided as part of an international investigation.
A group of prosecutors, investigators and foreign agents have begun searches at Nexo’s offices in the Bulgarian capital, local news agency Standart reported Jan. 12.
The operation reportedly began a few months ago, targeting a large-scale criminal financial scheme, which allegedly involved money laundering and violations of international sanctions against Russia. Citing sources on Bulgarian national television, the report alleges Nexo’s involvement in the scheme.
The TV also highlighted Nexo’s alleged ties to the Bulgarian government, stating that Nexo was co-founded by former parliamentarian Anthony Trenchev and Georgy Shulev, son of former Deputy Prime Minister Lydia Shulev.
Nexo reacted quickly to the latest news, taking to Twitter to assure the public that the company complies with global crypto regulations and has implemented strict anti-money laundering and KYC policies.
“Unfortunately, with the recent regulatory crackdown on cryptocurrency, some regulators have recently taken guesses first, asked questions later. In corrupt countries, this is a border on extortion, but this too will pass.
Over the years, we have turned down many deals because Nexo never compromises on our strict anti-money laundering and know your customer policies. But we always know that this is how you build a sustainable business. 1 /
– Nexus January 12, 2023
Founded in 2018, Nexo operates a cryptocurrency investment platform that also allows users to share and borrow against cryptocurrencies. The company first ran into trouble in the United States last year, as California’s Department of Financial Protection and Innovation filed a waiver and abstention order against Nexo regarding its interest rate service in September. Nexo eventually decided to phase out operations in the United States after failing to engage with local regulators.
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