According to reports, the crypto lending giant Nexo is getting ready to sue the Bulgarian authorities in order to seek financial compensation for the damages that were brought by the unexpected disruption from the police. As per information obtained, investigators allegedly waited for hours before providing a search warrant, and inspectors reportedly did not identify themselves at any point.
Nexo To File Lawsuit Against Bulgaria
In addition, the company noted that Nexo does not provide any services for those living in Bulgaria owing to the possibility of conflicts with the regional authorities. Furthermore, the firm reaffirmed that it has been compliant with Anti-Money Laundering regulations and sanctions against Russia; and that it has cooperated with prominent crypto intelligence services such as Chainalysis.
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The company has stated that it is confident that it will prevail in the litigation, which will result in Nexo receiving compensation for the harm that was caused by the probe. It was quoted as saying:
The compensations that Bulgaria will pay after the claims are filed and won by Nexo will be another record breaking amount of hundreds of millions, but, unfortunately, they will be at the expense of the Bulgarian taxpayer.
Nexo Offices Raided
Employees from the Prosecutor’s Office, the Ministry of Internal Affairs, and the National Security State Agency entered the offices of the cryptocurrency platform Nexo yesterday around 10:00 a.m., conducted searches, and subsequently initiated interrogations. The reason for this is an investigation into various types of criminal activity, including tax, computer, and money laundering. At the briefing held by the prosecutor’s office, it was reported that evidence was gathered that a customer of the platform who transferred cryptocurrencies was officially declared to be a person who bankrolls terrorist activities.
According to Siyka Mileva, a spokesperson for Bulgaria’s chief prosecutors, the investigation into the London-based Nexo included the participation of more than 300 law enforcement officials, prosecutors, and agents of the national security service. She also mentioned that the investigation is currently only being conducted in Bulgaria, with local police officers searching 15 addresses connected to Nexo as of the 12th of January.
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