coinpedia.org
Sofia, Bulgaria – In a significant development for the cryptocurrency sector, the Bulgarian Prosecutor’s Office has officially concluded its investigation into the prominent crypto lender Nexo. Launched in January 2023 amidst global market instability, the inquiry targeted four of Nexo’s top executives but has now been closed due to insufficient evidence of wrongdoing.
The investigation, initiated after the FTX collapse and the ensuing crypto market downturn, focused on allegations against Nexo co-founders Kosta Kanchev, Antoni Trenchev, Kalin Metodiev, and Trayan Nikolov. These allegations included potential involvement in money laundering, tax evasion, and computer fraud.
This case emerged during heightened regulatory scrutiny over the crypto industry following high-profile failures and frauds within the sector.
Findings of the Investigation:
The Prosecutor’s Office revealed that Nexo’s offerings do not meet the criteria of financial instruments under current regulations. This clarification significantly impacted the course of the investigation.
Moreover, as reported by the Bulgarian News Agency, extensive inquiries by Bulgarian authorities found no substantial evidence to support claims of criminal activity, financial malpractice, or computer-related fraud by Nexo or its executives.
Responding to the closure, Nexo’s co-founder Antoni Trenchev expressed relief and vindication, stating that the termination of charges reaffirms Nexo’s commitment to compliance and ethical practices. Trenchev also suggested that the investigation may have been politically motivated.“