Siika Mileva, spokeswoman for Bulgaria’s chief prosecutor, denied any political motivation behind the investigation into crypto lending company Nexo, according to local reports. The comments were made in response to claims that the investigation was linked to the company’s political donations.
Almost all cases where prosecutors launch investigations that affect other people’s financial interests lead to attacks and accusations, Mileva said, adding that “it has become a national sport to attack the institution.”
On January 12, a group of prosecutors, investigators and foreign agents searched the company’s office in the Bulgarian capital, Sofia. The operation targeted a large-scale money laundering scheme as well as a violation of Russia’s international sanctions.
Less than 48 hours after the Nexo office was raided, four people were charged with money laundering, tax crimes, computer fraud, and banking without a license. Two individuals were released on bond totaling nearly $550,000. The other two remain unaccounted for in Bulgaria and have been declared international wanted persons. It is not clear if the individual has any ties to the crypto company.
According to Mileva, transactions made by Nexo amounted to $94 billion in five years. An organized criminal group operating in several countries since the beginning of 2018 has been investigated, the spokesman said.
On Twitter, Nexo complained about law enforcement raids and said it was preparing a lawsuit for damages caused by the sudden police intrusion. The company classifies the authority’s approach as “kick first, ask questions later”.
According to the company, the investigators have several hours of search warrants, while inspectors have never identified any Nexo employees.
We are always cooperating with the relevant authorities and regulators, and we hope to have some exciting news in the coming weeks. 7/
– Nexus (@Nexus) January 12, 2023
Nexo operates an investment platform where users can share and borrow against crypto. Despite having an office in Bulgaria, the company does not provide services to citizens due to regulatory issues. The company was founded in 2018 and has offices in England, Bulgaria and Switzerland.
In December 2022, Nexo announced that it would end its United States operations due to a lack of clear regulatory cooperation with the US authorities.