Angry cryptocurrency lender Nexo is under pressure from regulators after its offices were reportedly raided as part of an international investigation.
A group of prosecutors, investigators and foreign agents began searching Nexo’s offices in the Bulgarian capital, local news agency Standart reported on January 12.
The operation was reported a few months ago, targeting a large-scale financial criminal scheme allegedly involving money laundering and violation of international sanctions against Russia. Citing a source from Bulgarian National Television, the report alleges Nexo’s involvement in the scheme.
The television also highlighted Nexo’s ties to the Bulgarian government, stating that Nexo was founded together with former MP Antoni Trenchev and Georgi Shulev, the son of former deputy prime minister Lydia Shuleva.
Nexo was quick to react to the latest news, taking to Twitter to assure the public that the company is fully compliant with global crypto regulations and has implemented strict Anti-Money Laundering and Know Your Customer policies.
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“Unfortunately, with the new regulatory crackdown on crypto, some regulators recently applied a kick first, ask questions later approach. In corrupt countries, it borders on racketeering, but it will also be done,” wrote Nexo.
Over the years, we have turned away a lot of business because Nexo never compromises on our strict anti-money laundering policies and understanding our customer policies. But we always know that this is how you build a sustainable business. 1/
– Nexus (@Nexus) January 12, 2023
Founded in 2018, Nexo operates a cryptocurrency investment platform, also allowing users to trade stocks and loans against crypto. The company first ran into trouble in the United States last year, with the California Department of Financial Protection & Innovation filing a cease-and-desist order against Nexo on interest services in September. Nexo finally decided to end its operations in the US after failing to find dialogue with local regulators.