Nexo to Sue Bulgaria Following Raid on its Office
- Prosecutors in Bulgaria claim that over $94 billion has passed through Nexo in 5 years.
- Nexo’s operation has also been questioned by regulators in the United States.
- Nexo was hit with a flood of withdrawals following the raid on its office.
After a series of extensive searches at its offices in Sofia, the embattled cryptocurrency firm, Nexo, plans to file a lawsuit against the Bulgarian government. A local source announced on Friday that Nexo had complained about the steps taken by law enforcement during its investigations.
Nexo is reportedly getting ready to sue the government for damages stemming from the abrupt police interruption. According to one complaint, inspectors failed to introduce themselves while investigators waited hours before presenting a search warrant.
Nexo officials claim that the recent raids on its offices were illegal and showed the “total incompetence” of those conducting the “shameful action.” The crypto service provider also accused the government of trying to “loot” a thriving enterprise.
The company also said that it does not offer its services to Bulgarian residents due to potential problems with the local authorities. Nexo also reaffirmed that it has complied with anti-money laundering regulations and Russian restrictions, in addition to working with important crypto intelligence companies like Chainalysis.
Nexo officials believe winning the lawsuit will compensate the firm for the losses caused by the raid. According to the firm,
The compensations that Bulgaria will pay after the claims are filed and won by Nexo will be another record breaking amount of hundreds of millions, but, unfortunately, they will be at the expense of the Bulgarian taxpayer.
According to authorities in Bulgaria, more than 300 law enforcement agents took part in the investigation against Nexo. Local police also searched 15 locations connected to the company, and several international agencies were involved in the investigation.
Nexo is a crypto lender based in the UK with operations in Bulgaria. Prosecutors in Bulgaria said the raid on Nexo was done “with the aim of neutralizing illegal criminal activity.” A spokesperson for chief prosecutor Siika Mileva said the company was being investigated for possible involvement in computer fraud, tax fraud, cybercrime, organized crime, and money laundering.
The probe was launched four months after regulators in different US states issued “cease and desist” orders against Nexo for marketing unregistered securities. In addition, Nexo was sued by the New York attorney general’s office for falsely stating that it conforms with “applicable regulations and licensing requirements.”
Nexo, in December, said it would stop offering some of its products in the United States, citing the country’s refusal to “provide a path forward for enabling blockchain businesses.” Nexo remains one of the few active crypto lenders in the market following the collapse of other giants such as Celsius and BlockFi.