Four people have been charged with money laundering, tax crimes and computer fraud in a criminal investigation embroiling the crypto lender Nexo.
Prosecutors reportedly filed four charges less than 48 hours following a raid on the offices of bitcoin lender Nexo in Sofia, Bulgaria. Authorities have accused four citizens of Bulgaria of forming an organized crime gang that may have engaged in money-laundering and illegal banking, according to a Jan. 13 article by Bloomberg.
According to reports, the National Police Service of the nation seized several items as part of the investigation, including digital currency, money, and laptops.
Nexo characterized the prosecution’s tactics as a “kick first, ask questions later” strategy after the Jan. 12 raid. According to reports, the business intended to file a lawsuit in an effort to recover damages brought on by police actions.
The lawsuit would claim that police failed to present a search warrant or identify themselves to Nexo employees.“We are always cooperating with the relevant authorities and regulators,” said the lending firm. Frontend developer George Naydenov from Nexo’s Sofia office stated on LinkedIn:
“I thank the Bulgarian Prosecutor’s Office for trying, of course, in the most incompetent and pathetic way to take away the work of over 600 people in Nexo including me.”
It is unknown who was arrested and what responsibility they may have had at Nexo. About 600 people work for the lending company in Sofia. Nexo, an investment platform that was founded in 2018, lets customers bet and borrow against cryptocurrencies.
The company purportedly does not provide its services to people of Bulgaria due to probable problems with the local authorities, despite having offices in the United Kingdom, Bulgaria, and Switzerland.
Nexo said in December that it would gradually stop offering its services in the US, citing the absence of a clear regulatory-compliant course of action.
