Amid the official announcement that the Bulgarian crypto lender is under investigation, Nexo insists that it has followed AML and KYC rules. Crypto lender Nexo has become the subject of a large-scale investigation in Bulgaria as prosecutors probe possible money laundering, tax violations, computer fraud, and other crimes.
The local media site BNT reported that Nexo‘s Sofia offices were raided on 12 Jan 2023 as part of an investigation into financial crimes, including violations of international sanctions against Russia. Nexo co-founder Antoni Trenchev confirmed the raid to Bloomberg, adding that Bulgarian authorities are inquiring about a Bulgarian unit of the group that “does not deal with customers but only performs functions related to operating costs.”
The report also suggested that there is a connection between Nexo and the most wanted fraudster Ruja Ignatova, the missing founder of the Ponzi scheme OneCoin. However, OneCoin has yet to be mentioned in official statements.
Officials said they would have evidence that at least one person who used the platform to transfer cryptocurrencies has been officially classified as a financier of terrorist activities.
In a Twitter thread, Nexo said it cooperates with relevant authorities and regulators. The company also stressed that it has always gone the “extra mile” to meet regulatory standards.
“Unfortunately, in the recent regulation of cryptocurrencies, some regulators have taken the approach of kicking first and asking questions later,” Nexo said. “In corrupt countries, this borders on extortion, but this too shall pass.”
