Bulgarian Authorities Clears Nexo of Criminal Activities

The Bulgarian Prosecutor’s Office has now closed its high-profile investigation into crypto lender Nexo after it found no evidence of criminal activities against the platform and its associates. Consequently bringing an end to its extensive probe against the lender.

As per an official statement, the regulators reached this conclusion after they failed to gather substantial evidence to prove claims of money laundering, tax infractions, or illicit financial services provision without proper authorization leveled against the platform.

Furthermore, the regulators stressed that the lack of a defined legal framework for regulating cryptocurrency-related activities in Bulgaria presented a challenge in fully evaluating the case. Central to the investigations were four top executives of the crypto lender – Kosta Kanchev, Antoni Trenchev, Kalin Metodiev, and Trayan Nikolo. These individuals were accused of operating an organized criminal group from 2018 to Jan 2023.

Nexo Executives Responds

Nexo co-founder and managing partner Antoni Trenchev stated that the Bulgarian Prosecutor’s Office dropping all charges against Nexo and its executives, along with confirming the absence of any crimes, clearly demonstrates that the entire attack on Nexo was politically motivated and should never have occurred.

Additionally, he noted that this development significantly helps to clear their names and serves as a vindication for all reputable individuals in the crypto industry, and they are pleased with this outcome.

Bulgaria Authorities Raid Nexo Offices

Earlier in January, a group of prosecutors, investigators, and internal agents raided Nexo’s offices located in the capital city of Sofia. The raids were in connection to a massive financial scam involving money laundering and the violation of sanctions against Russia.

However, the crypto lender denied all allegations adding that it was wrongly targeted. Nexo also reiterated its compliance with regulatory standards and its stringent anti-money laundering and know-your-customer policies.

Meanwhile, Nexo agreed to pay a $45 million fine to the United States Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) as a settlement. This decision was made after it was revealed that Nexo did not register its Earn Interest Product (EIP) before making it available for sale.

Beyond Bulgaria, Authorities Clamp Down on Crypto-related Activities

Following the demise of industry giants like FTX, regulators around the world beamed their searchlight on the industry with many introducing stiffer regulations for the space.

For instance, the enforcement activities of the US Security and Exchange Commission increased by up to 50%. Also, Belgian Financial Services and Market Authorities (FSMA) introduced stricter regulations to guide the activities of crypto exchanges and other digital asset platforms in the country.