Prosecutors in Bulgaria have commenced investigations into alleged illegal operations of popular crypto lender, Nexo. According to a report by Reuters, the prosecutors stormed at least 15 offices of the lender within the country’s capital on Thursday. Worthy of note that the prosecutors have been on the neck of the firm since a few months ago over its alleged involvement in large-scale financial criminal scheme.
According to findings, Nexo allegedly engaged in money laundering and helped Russia evade international sanctions. Confirming the probe, Siyka Mileva, a spokeswoman for the prosecutors’ office said active steps are ongoing as part of a pre-trial investigation, geared towards neutralising an illegal criminal activity of the lender.
Mileva further that the prosecutors have come to realize that the main organisers of the platform are citizens of Bulgaria. Also, she maintained that the main activities of Nexo unfolds within the Bulgarian territory. Meanwhile, the spokeswoman noted that more than 300 investigators, police officers and security officers are collaborating to aid the probe. According to her, the team seeks to unravel the setting up of an organised crime group, tax crimes, money laundering, banking activity without a license.
Worthy of note that the Bulgarian investigators also accused Nexo of operating through many companies. They added that more than $94 billion has gone through the crypto lending platform in the last five years. Beyond this, the prosecutors alleged that an individual culpable of financing terrorism used the platform to transfer cryptocurrencies.
Nexo denies alleged involvement in money laundering operations
Reacting to the development, Nexo said it has been complying with global crypto regulations. In a Twitter post, the crypto lending firm maintained that it usually enforces strict anti-money laundering and KYC policies. In addition, the firm said it has always gone extra mile to implement cutting-edge solutions to ensure adherence to the highest regulatory standards and provide a smooth customer onboarding journey.
Furthermore, Nexo boasted that it possesses more than 30 AML compliance officers despite being automated. According to the lending firm, it employed the officers to ensure the sustainability of a real-time picture of its clients. Meanwhile, at the beginning of the war in Ukraine, the lender said it helped fundraised for victims. More so, the firm said it also took aggressive approaches in ensuring compliance with sanctions against Russia.
Nexo lamented how regulators have been adopting “kick first, ask questions later” approach in dealing with crypto firms. However, it promised to continuously cooperate with the Bulgarian regulators.