Bulgarian Authorities Investigate Crypto Lender Nexo for Money Laundering

• Bulgarian law enforcement officials are investigating crypto lender Nexo for alleged money laundering and sanctions violations.
• Bulgarian officials raided Nexo’s offices on Jan. 12, 2023.
• Nexo denied any wrongdoing in a statement on Twitter following the story.

Bulgarian law enforcement officials are currently investigating cryptocurrency lender Nexo for alleged money laundering and sanctions violations. Siika Mileva, a spokesperson for Bulgaria’s attorney general, said that the investigation is a large-scale operation involving 300 investigators from various agencies, including the National Security Service, Gendarmerie, and Sofia Police.

The investigation came to a head on Jan. 12, 2023, when Bulgarian law enforcement officials raided Nexo’s offices in Sofia as part of the investigation. Svetlio Vasilev, head of Bulgaria’s cybercrime unit, said that a client of the platform who transferred cryptocurrency has been officially declared an organizer of terrorist activity, and that more than 15 addresses are being searched with new persons of interest being established.

Nexo, which is based in London but also has offices in Sofia, immediately denied any wrongdoing in a statement on Twitter following the story. The company said that it has always had stringent anti-money laundering and know-your-customer policies and has turned down a lot of business because of this.

The investigation into Nexo is ongoing, and it remains to be seen who will be charged with the crimes. Bulgaria has recently seen an uptick in cryptocurrency-related crime, with the country’s financial regulator warning against illegal activities in the cryptocurrency space. It is hoped that this investigation will help to bring those responsible to justice and help to protect innocent investors.

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