Nexo office in Bulgaria raided over fraud, money laundering suspicion

Cryptocurrency lender Nexo’s office in Bulgaria was raided by local authorities on Thursday over suspicion of money laundering, tax offenses, computer fraud and banking without a license, according to local media reports.

See related article: Crypto lender Nexo introduces spot, futures trading

Fast facts

• The raid was part of an operation that involves 300 different government agency members, Siika Mileva, a spokesperson for Bulgaria’s attorney general, told local media.
• Mileva didn’t confirm whether any arrests were made during the raid.
• Bulgarian authorities alleged that the crypto bank had been operating through numerous registered commercial entities, most of which are post office boxes or shell companies. She added that one of Nexo’s clients had been funding terrorist activities.
• “Unfortunately, with the recent regulatory crackdown on crypto, some regulators have recently adopted the kick first, ask questions later approach. In corrupt countries, it is bordering with racketeering, but that too shall pass,” Nexo said via Twitter on Thursday, adding that the company is “always cooperating with the relevant authorities and regulators.”
• The raid comes a month after the crypto lender pulled out of the U.S. market “due to a lack of regulatory clarity.”
• Nexo’s native token plummeted 1.5% in the hour to 10:15 p.m. in Hong Kong, to US$0.71.
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