Cryptocurrency platform Nexo has been raided by Bulgarian authorities, at its various premises in Sofia. The operation is related to suspicions of money laundering.
Search at cryptocurrency exchange Nexo
Today, Bulgarian police conducted a search at the premises of Nexo in Sofia. After the bankruptcy of Voyager, Celsius or BlockFi, the platform is one of the last major centralized players allowing the lending and borrowing of cryptocurrencies.
The search is part of an investigation into suspected money laundering and other tax offences. In fact, fifteen sites were visited by the authorities in the Bulgarian capital. It was a large-scale operation that mobilised 300 police officers, investigators and security guards.
Siyka Mileva, the spokeswoman for the prosecutor’s office, commented on the facts, recalling the Bulgarian origin of Nexo:
“In Sofia, active measures are being taken in a preliminary investigation aimed at neutralizing an illegal criminal activity of the crypto lender Nexo. It has been established that the main managers of the international platform are Bulgarian citizens and that the main activities take place from Bulgarian territory. “
Nexo defends itself from accusations
At the moment, there is no way to judge Nexo’s integrity. The only concrete information on the case concerns a person who transferred funds from the platform and who is officially accused of financing terrorist activities. However, the details stop here, and it is not clear whether the transfers as such are of an illegal nature or not.
In a Twitter thread, Nexo defended its integrity and even boasted of its anti-money laundering and anti-terrorist financing (AML/ATF) capabilities. The platform claims that it does not compromise, and that it has turned down contentious cases over the years:
Over the years, we have turned down a lot of business because Nexo never makes compromises with regard to our very stringent anti-money laundering and know-your-customer policies. But we have always known that this is how you build a sustainable business. 1/
– Nexo (@Nexo) January 12, 2023
Nexo goes even further, pointing to Bulgarian corruption and the aggressiveness of global regulators after FTX’s criminal activities came to light:
“Unfortunately, we have to be careful not to get caught in the crossfire.
“Unfortunately, with the recent regulatory crackdown in crypto, some regulators have recently adopted the “strike first, question later” approach. In corrupt countries, this borders on racketeering, but that too shall pass. We are still cooperating with the relevant authorities and regulators, and we hope to have some exciting news in the coming weeks. “
Whatever the outcome of this story as to whether or not Nexo has done anything wrong, the reality is that regulators are indeed on edge. This is also felt in France, with a crucial vote in the French National Assembly on 24 January, which threatens the competitiveness of local players.
