invezz.com
Crypto lender Nexo has reportedly been raided by police in Bulgaria as part of a large-scale international investigation.
On Thursday, January 12, a local news outlet reported that Nexo’s offices in Sofia had been searched by prosecutors, criminal investigators and foreign agents. The outlet quoted a national television channel as linking the raid to action against financial crimes, including money laundering.
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The police are also looking into possible violations of the international sanctions imposed against Russia following the country’s invasion of Ukraine.
The native Nexo (NEXO/USD) token fell amid the news, trading lower by about 2% early morning as major cryptocurrencies bounced. According to data from CoinGecko, Bitcoin had crossed above $18,000 while Ethereum touched prices above $1,400.
Nexo says it’s cooperating with authorities
A statement from Nexo appeared to confirm the news, noting in a tweet that it had nothing to hide about its operations and that it was cooperating with authorities.
The crypto lender sought to assure its customers and the general public of its long standing adherence to regulatory requirements. This includes strictly implementing Know Your Customer (KYC) and enforcing anti-money laundering checks. On the issue of compliance, the crypto platform noted:
“Despite being fully automated, Nexo has 30+ AML compliance officers who ensure that we retain a real-time picture of our clients, which includes adverse media publications, OFAC sanctions lists, and source & flow of funds.”
We are always cooperating with the relevant authorities and regulators, and we are hopeful that we will have some exciting news in the weeks to come. 7/
— Nexo (@Nexo) January 12, 2023
The raid on Nexo comes at a time crypto companies face a lot of attention following a series of implosions across the ecosystem. Multiple crypto lenders filed for bankruptcy in 2022 amid the crypto winter that brutalised the digital assets market.
While Nexo has so far stayed clear of the mayhem, it did announce a “phased exit” from the US market in December. At the time, the platform cited a lack of regulatory clarity despite contrary “rhetoric” from local regulators.