Crypto Lender Nexo Alleged Money Laundering, Tax Offenses In Bulgaria

Key Points:

• Authorities in Bulgaria are looking into the cryptocurrency lender Nexo on suspicion of money laundering, tax evasion, unauthorized banking, and computer fraud.
• In order to neutralize the criminal activities of the crypto lender, which involves more than 300 people, the Bulgarian Prosecutor’s Office is starting an inquiry in Sofia.
• Nexo declared that the company is working with the appropriate authorities and regulators. The company said it had strict know-your-customer and anti-money-laundering policies and suggested it was being unfairly singled out for attention.

According to reports on Thursday, Bulgarian authorities have begun an inquiry into potential unlawful acts carried out by crypto lender Nexo.

Authorities in Bulgaria are reportedly looking into the cryptocurrency lender Nexo on suspicion of money laundering, tax violations, unlicensed banking, and computer fraud. They conducted raids at more than 15 locations in Sofia, the country’s capital.

When it comes to the cryptocurrency realm, crypto lenders operate like banks, giving their clients interest in the cryptocurrencies they deposit on their platform.

According to a statement posted on Facebook on Thursday, the Bulgarian Prosecutor’s Office is looking into Nexo’s criminal behavior in Sofia in order to neutralize it. The operation involves more than 300 investigators.

Siyka Mileva, a spokeswoman for the prosecutor’s office, said:

“The main organizers of the scheme are Bulgarian citizens, and the activity was carried out mainly from the territory of Bulgaria. Evidence has been collected that a person who used the platform and transferred cryptocurrencies has been officially declared a terrorist financing person,” according to the statement.

Nexo stated in a Twitter thread that it is working with the necessary authorities and regulators. It claimed to have strict know-your-customer (KYC) and anti-money-laundering (AML) rules and suggested it was being unfairly singled out for attention.

According to the prosecution, Nexo operated through numerous businesses, many of which were mere “post boxes.”

Previously, because of difficulties with harsh policies in the US, the crypto lender abandoned this market.

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Harold

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